Libra co-creator David Marcus is confident that Facebook’s digital currency will launch in 2020 despite mounting regulatory pressure from jurisdictions around the world. The Libra chief also sees adoption as a much larger concern for the cryptocurrency project than whether authorities are happy with the crypto.
There continues to be strong opposition to the planned Libra launch, especially in Europe. Facebook’s crypto plans will also form part of deliberations of a Congressional hearing scheduled to hold next week.
Libra Will Launch in 2020
“The goal is still to launch Libra next year . Until then, we’ll need to address all questions adequately, create a suitable regulatory environment.”
The Libra Association has been in talks with central banks and regulatory authorities from around the world.
While Libra has courted negative comments from authorities across the globe right from the off, the pressure seems to have gone up a few notches in recent weeks. Both Germany and France have come out to state they will block Facebook’s crypto in Europe.
Germany’s federal cabinet recently approved its blockchain strategy with the ‘Bundeschain’ seen as a way of combating Libra in the country. French Finance Minister Bruno Le Maire last week called Facebook’s crypto a threat to the monetary sovereignty of nations.
Marcus has since responded to these comments as reported by DemandSolutionNews. According to the Facebook crypto chief, the stablecoin will pose no threat to the established financial infrastructure.
Much Ado About Regulatory Pressure
For Marcus, regulatory scrutiny isn’t Libra’s biggest hurdle. Instead, the he identified widespread adoption as a much larger issue for the project.
Commenting further on the matter, Marcus opined:
“It’s unlikely in any case the people will pay for an espresso in Switzerland, Germany or France with Libra in the future.”
In areas where Libra won’t find adoption for everyday microtransactions, Marcus expects the stablecoin to see significant use as a vehicle for cross-border transfers.
China has already taken steps to counter Libra by accelerating plans for a state-issued digital currency pegged to the yuan. There is also the fact that the country already has a thriving electronic payment ecosystem with behemoths like AliPay and WeChat Pay.
For cross-border transactions, Libra will also have to compete with bitcoin and cryptos like XRP. Payment companies like Visa as well as banking giants are also in the running to launch cross-border remittance solutions.
Facebook’s reputation with regard to user privacy might also throw the proverbial spanner in the works as far as mainstream adoption goes. To this end, Marcus says the Libra Association is working to convince stakeholders that the social media giant will have no access to Calibra wallet data.
US Congress to Discuss Libra with SEC
The Financial Services Committee of the U.S. Congress says Libra will be part of its next hearing with SEC commissioners slated for Tuesday (September 24, 2019). Per a memo issued by the Committee, talks will include deliberations over whether Libra tokens constitute a security.
The U.S. SEC has continued its clampdown on unregistered securities offering. For the Commission, most cryptocurrencies are securities and as such must register with the SEC or secure an exemption from securities oversight.
This hearing will be the latest move by the U.S. Congress directed at Facebook’s crypto project. Back in June, Congress held a couple of sessions focused around Facebook’s proposed digital currency and cryptos in general.