What happened to the Libra project ?
What happened to the Libra project ?

By Cryptobreakfast1 | Yourfinadv | 17 Feb 2020


Reaction in the world

  • Libra has shocked the banking and financial world globally, highlighting that the monetary future will be linked to digital currencies. The central banks, caught unprepared by this tzunami, then folded back and started talking about digital state currencies, a sort of currency linked to the Fiat state currency. This process was born to counteract a possible entry of Libra. In Europe, the European Central Bank is evaluating the launch of the digital Euro. According to Christine Lagarde, president of the European Central Bank, the ECB should not lag behind the current trend, but should play an active role, rather than acting as an observer of a changing world. Lagarde also said that an expert group has been set up to work closely with national central banks to explore the potential benefits of a digital euro. The US doesn't really seem to want to hear about the digital dollar at the moment, but they will have to do so very soon! The situation of the FIAT dollar is critical. The US economy is showing signs of crisis, and we may be on the verge of a global recession. The traditional monetary system, as we know it today, is no longer working and there are those who are fearing the entry on the scene of a global digital currency, which can solve the problems generated by the hegemony of the dollar to avoid a destabilization due to the duopoly with the Chinese currency the renminbi. China, which is fighting a trade war with the United States, has in fact accelerated in recent months the process of integration at state and private level of blockchain technology, as well as being ready to launch its own state digital currency. Mark Zuckerberg called in a hearing before the U.S. Congress in October 2019, said that the supremacy of the dollar could be greatly undermined by China's plans to launch a national digital currency.

Libra partner's

  • Important partners linked to the Libra project, such as PayPal, Visa and Mastercard, have left the Libra association under constant political pressure. A few days ago, the news that even the telephone giant Vodafone has abandoned the project. On the other hand, these giants are an expression of the old system and certainly do not want to incur sanctions or penalties. How is the Libra Association moving? The Association has announced the formation of a technical steering committee composed of five members that will govern the ongoing development of the project. In a statement that appeared on the Libra.org website on January 16, there is talk of a Committee for the realization of the vision of the project to become "self-governing and independent of the control of any organization". This shows that Facebook and its partners are not willing to set aside the project in any way.

Conclusion

  • This article gives a fairly clear overall picture of what the world's monetary future will be. Libra will certainly see the light of day despite the constant stops. It is natural that a bank with 3 billion hypothetical customers (facebook users worldwide) does not like the to loose their power, but banks can't stop the progress!



Yourfinadv
Yourfinadv

Economic degree in global markets, entrepreneur and investor with exposure to crypto related assets.

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