Does Facebook bluff about the parties involved in Libra payment method?

facebook libra whitepaper

According to The New York Times, Facebook presents things around Libra more rosy than they are. How does this work? Is Facebook bluffing to get Libra off the ground? And what’s on the loose?

According to Facebook, there are 27 parties that participate in Facebook’s digital currency : Libra. But some of those ‘partners’ are perhaps less enthusiastic than it might seem, says Nathaniel Popper, journalist at The New York Times.

Not definitively promised

According to Popper, seven of the 27 parties have not yet definitively promised their support. They have also not transferred the $ 10 million contribution. “We will only do that if we know better how Libra works exactly” is the reasoning behind the argument.

And that is understandable. Libra is buried in criticism in the media. The most important source of this is that many details about Libra are still missing – vagueness. This is parried by Libra by indicating that the project is still in its infancy. But it is good to think that partners have taken a wait and see approach. In fact, in this context, the number mentioned (7 out of 27) is still relatively low.

“Banks pulled out”

According to Popper, Facebook would have hoped that the aforementioned partners would also (extensively) speak out about Libra. “To counter a part of the criticism,” it was thought. According to Popper, however, the problem is that the parties themselves are concerned about Libra. Not necessarily the best basis to build on.

Facebook has approached a number of major financial institutions, including Goldman Sachs, JPMorgan Chase, and Fidelity. All parties declined the offer, mostly because of uncertainties surrounding crypto currency related legislation, writes Popper.

All the companies mentioned did not want to respond to it. Only from Fidelity we heard something: “We are keeping an eye on developments around Libra.”

Bluffing for success?

All parties affiliated with Libra are jointly members of the so-called ‘Libra Association’. This consortium is responsible for the management of Libra. In other words: an essential part of Libra’s ecosystem. The fact that the parties involved themselves are not yet convinced of Libra does not, to say the least, contribute to confidence in it.

At Libra, they were undoubtedly aware of the importance of the first announcement. Creating the impression that there are cracks in the board is a ‘no-go’. The solution? Not to mention anything and a hint of bluff: “it’s a success!”

This story fits well with the image that arose around Libra. Yet this also deserves a side note: it cannot be verified. All parties who, according to the document, have not promised anything, do not want to be named. The only official information comes from Libra itself: since the launch there has been much interest from other companies. There should even be a waiting list to keep track of who wants to belong to the group of one hundred. To be continued!

Stay up to date!

Follow us on Twitter and Facebook!

About Joseph Vinton 42 Articles
Joseph is a journalist, SEO expert and content strategy consultant who prefers to roam the internet all day for the latest news and discussions in the field of tech, pop culture and media. He is also a freelance internet strategist and consultant, fascinated by online media and publishing.

Be the first to comment

Leave a Reply

Your email address will not be published.