Vodafone is the eighth company to quit Facebook’s digital currency project

British telecommunications firm Vodafone has pulled out of the Libra Association, raising further doubt that the digital currency will get off the ground this year as planned.
Another one bites the dust: Facebook unveiled the vision for Libra, which it has promised will promote “financial inclusion” around the world, in June. At the time, there were 28 members in the Libra Association, a nonprofit Facebook founded to manage the digital currency system. Then, in October, PayPal kicked off a string of high-profile exits including Visa, Mastercard, eBay, and Stripe. Vodafone is the first one to back out so far this year. Remaining members include Uber, Lyft, and Spotify.
Why? Vodafone told CoinDesk that it plans to devote resources previously meant for Libra to M-Pesa, its digital payments platform that is already established in several African nations, Afghanistan, India, and Romania. It is not clear whether Libra might represent competition for M-Pesa.
Project in peril? Since day one, Libra has faced skepticism and resistance from policymakers around the world, many of whom still aren’t sure of how to approach it from a regulatory standpoint. The backlash has likely contributed to the exits of many of its most high-profile members. Although the goal is to launch the currency this year, with 100 total members, it won’t be surprising if it doesn’t make that deadline—as Facebook itself has acknowledged.
Glass half full: Still, the Libra Association has consistently said the project is not in trouble, and that it will take as long as necessary to ensure the approval of regulators before launching. It has also said it still expects to have 100 total members by the time it launches. In October, the group said that more than 1,500 entities are interested in joining.
Keep up with the fast-moving and sometimes baffling world of cryptocurrencies and blockchains with our weekly newsletter Chain Letter. Subscribe here. It’s free!
Keep Reading
Most Popular
DeepMind’s cofounder: Generative AI is just a phase. What’s next is interactive AI.
“This is a profound moment in the history of technology,” says Mustafa Suleyman.
What to know about this autumn’s covid vaccines
New variants will pose a challenge, but early signs suggest the shots will still boost antibody responses.
Human-plus-AI solutions mitigate security threats
With the right human oversight, emerging technologies like artificial intelligence can help keep business and customer data secure
Next slide, please: A brief history of the corporate presentation
From million-dollar slide shows to Steve Jobs’s introduction of the iPhone, a bit of show business never hurt plain old business.
Stay connected
Get the latest updates from
MIT Technology Review
Discover special offers, top stories, upcoming events, and more.