The Libra Money Association has officially established 21 partners to sign the charter.


According to Bloomberg, Facebook’s remaining partners in its digitally encrypted currency project signed a document on Monday to formally join the Libra Money Association. The association is a new governing body that will oversee the global encrypted currency launched by the social media giant.
On Monday, 21 founding members of the project signed a formal charter in Geneva, which shows their efforts on the project, but the new charter also provides that members of the association can withdraw from the project at any time. Over the weekend, several prominent partners of the association opted out of the project, so the size of its founding members has also been reduced. In addition, the association established a board of directors and announced the first members of its executive leadership team. Alliance partners, including Uber, Spotify and Coinbase, will work with Facebook to help the new currency officially get started and pass regulatory scrutiny.
“Today is an important day in our journey, and it marks an important step forward,” Calibra, a Facebook department dedicated to cryptocurrencies, said in a statement. Now that we have ushered in a time of change, we are committed to achieving that goal.
In important events, the new system provides voting rights for each founding member, each member has a vote. The Libra Money Association said its first five-member board would include David Marcus, a Facebook executive who has been responsible for the project, and representatives from Kiva Microfunds, PayU, Xapo and Andreessen Horowitz, a venture capital firm.
The formal establishment of the Libra Money Association is an important milestone in the development of Libra Money, a newly born project. Facebook announced the plan in June this year. At first, the association’s partners consisted of 27 companies, including some very famous payment companies. So many partners are both a demonstration of strength and a signal from Facebook that the social networking giant will not be solely responsible for the encrypted currency. Instead, other companies will help Facebook manage the new currency. This is an important detail, because Facebook has been criticized for privacy vulnerability scandals and the company is currently facing escalating antitrust scrutiny.
However, strong resistance from regulators and legislators has raised concerns among some of the early partners of the project, which was abandoned by several well-known partners over the weekend. Enterprises that quit the project include Visa, MasterCard, Stripe and eBay. Paypal, another veteran payment company closely associated with the Libra Currency Project, announced its withdrawal a week ago.
Marcus said on Twitter last Friday that although several partners opted out, he was still hopeful about the project. He wrote: “Such great changes have brought us difficulties. But when faced with tremendous pressure, you can know that you are doing something important.
Libra coins still have a long way to go before they are officially available. Facebook executives, including its CEO Mark Zuckerberg, have promised that they will not launch the currency until American regulators are comforted. It may take some time to reassure and satisfy U.S. regulators. Members of the Senate and House of Representatives have publicly criticized Facebook’s project, which has also raised concerns that the new encrypted currency could be used for illegal money laundering or trafficking. Several U.S. senators sent letters to the participating payment companies last week urging them to withdraw from the project.
Zuckerberg will go to the House Committee on Financial Services next week to answer questions from members of the House. It is expected that the Libra coin will be the central topic of this discussion.
After the formal establishment of the Libra Money Association, the encrypted currency also ushered in a potential bright spot: all early partners who abandoned the project may soon be replaced by other enterprises. The Association says there are currently 1,500 other organizations interested in joining the association, but at present only 180 organizations meet the criteria for joining. (Yue Heng)