The Facebook project, Libra, has lost another of its sponsors with Vodafone announcing its decision to leave the Libra Association. Meanwhile, central banks in major economies are forming a coalition to explore digital currencies issued by the state in response to private cryptocurrencies.
According to BBC, the global telecommunications giant Vodafone is the last partner to leave the Libra Association. Commenting on his decision to abandon the project, a company spokesman revealed:
«From the beginning, we have said that Vodafone's desire is to make a genuine contribution to extend financial inclusion. We remain fully committed to that goal and feel that we can make the greatest contribution by focusing our efforts on the M-Pesa mobile payment platform »
Vodafone's stated reason for leaving the Facebook project offers another problem for Libra. M-Pesa is already a successful popular mobile money transmission system in eastern and southern Africa.
In addition to Vodafone, other early sponsors such as Mastercard and PayPal have resigned from the Libra Association. Both payment giants pointed out the rising regulatory rejections against the project as the reason for his decision to withdraw from the association.
In October 2019, arose Online leaked letters showing that the US senators ‘Urged’ Libra’s supporters like Visa and Stripe to abandon the project.
Despite growing criticism against the project, the Libra Association continues to make progress with the proposed digital currency platform. As previously reported by Crypto Report, the developers of the Facebook cryptocurrency have launched a second roadmap, with mainnet test reports already in progress.
Central banks are already preparing for the arrival of Libra
While Facebook's Libra project is facing growing criticism, more countries are moving towards the creation of their own central bank digital currencies (CBDC). On Tuesday, the central banks of Canada, England, Switzerland, along with the Bank for International Settlements (BPI) and the European Central Bank (ECB) announced the formation of a group of CBDC experts.
China seems to be advancing in the CBDC race having accelerated its plans since the publication of the Libra white paper. Central bank officials also say that private cryptos pose threats to sovereign monetary policies, which makes these CBDC efforts part of the countermeasure Libra collective.