Visa Inc., Mastercard Inc. and other financial partners that signed on to help build and maintain the Libra payments network are reconsidering their involvement following a backlash from U.S. and European government officials, according to sources cited by The Wall Street Journal.
Analyst considers that the Libra product will never be allowed to launch “To me it is obvious that governments will not give up control over monetary policy and currency willingly. Libra has zero chance of flying. Bitcoin on the other hand is already operational and no government has control over it, nobody can print bitcoins. As a store of value it is still so damn volatile. Nobody can regulate bitcoin, it is the ultimate in-your-face-stick-it-to-the-man tool. I would store a part of my portfolio just for that, I think cryptocurrencies are here to stay,” declared Cristian Constantinescu, serial entrepreneur in Europe.
Tech Analyst Daniel A. Bujorean agrees with the assessment: “Much are actually wrong with Libra. Taking away monetary control from governments is just one of the problems, emulating the banking system is another. Right now is just a proposal for stable coin but it offers deposits and could potentially offer loans based on previous transactions history (basic fractional system). Are banks willing to give that away?”