Facebook have sought to legitimise Libra in the public eye by diversifying the founding members. The Libra Association, a group of 28 major companies including PayPal, Visa, Uber, Spotify, was registered in Geneva this Summer.
Gabrielle Rabinovitch, PayPal’s investor relations Vice President, underlined that the payment service’s commitment to the Association is “non-binding”. She added: “obviously, I think there’s a lot of work to happen before we get to that point where it becomes something more than just a very exciting idea.”
Last month, unconfirmed reports alleged that some of Libra’s associate members were contemplating withdrawing from the project in light of intense regulatory spotlight.
U.S. lawmakers grilled the head of Facebook’s financial services division Calibra this Summer and then flew to Geneva to meet with Swiss regulators.
Only last week France’s Finance Minister announced that France would block the development of Libra in Europe, stating that the “monetary sovereignty of states is at stake.” The European Central Bank (ECB) is itself planning a digital currency.
The global impact of Libra as a medium of payment and its threat to existing state structures is seen by the members of the Association as a positive step. As cautious as Rabinovitch might be she emphasised Libra’s goals of “serving the underserved and democratising access to capital.”