A flurry of new developments during the past few days related to Libra, Facebook’s proposed digital currency, has set the stage for the next round of political fighting over the project’s future. Just a few weeks after the company admitted to investors that increasing regulatory scrutiny could mean that Libra may never launch, the company now seems as determined as ever to get it off the ground—however long that takes.
Gearing up: Perhaps most importantly, Facebook has just hired a lobbying firm to focus on “issues related to blockchain policy.” The social network has spent $7.5 million on lobbying so far in 2019, after spending nearly $13 million last year. Now it has added Washington, DC-based FS Vector, a firm that focuses on regulatory compliance and business strategy. One of its partners, John Collins, was formerly the head of policy at Coinbase, the popular US exchange.
More details please: Facebook’s announcement two months ago that it planned to launch Libra was immediately met with skepticism from policymakers and central bankers around the world. They raised concerns about security, privacy, and the potential risk to financial stability. Critics have also lamented the lack of details regarding how the currency will be managed, sending Facebook back to the drawing board. Now the discussion seems ready for its next phase.
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