In what seems to be another blow to Facebook’s Libra, the President of Switzerland has made a statement that recognized that it has failed in its current form, according to a report by Reuters published on 27 December.
Ueli Maurer, who is the finance minister of Switzerland and its outgoing president told SRF, the Swiss broadcaster that Libra does not have a chance in its present form because the central banks are unlikely to accept the basket of currencies which underpin it.
He maintained in the interview that “The project, in this form, has thus failed.”
Libra is yet to respond to the comment.
Trouble for Libra: A Brief Report Card
Ever since its much-hailed inception, Libra’s path has been fraught with difficulties and criticism. Trouble came from all directions. Advocacy groups began to request Congress in the United States to ‘stall the process of development of Libra’. Their concern was that the company’s claim of the stability of Libra’s value could be untrue.
Another major shock to Facebook’s Libra was when PayPal officially withdrew from the Libra association. Following it, several other major players chose to withdraw from the association including big names like Mastercard, Visa, Kayak, priceline.com, eBay, Stripe and PayPal.
A third bashing came from David Rutter, CEO of R3, a software firm. He said that Libra was ‘stupid and naive’. He maintained that Libra was a hurried approach carried out without much understanding. With widespread criticism, withdrawals and lack of acceptance and support, the future of Libra does not seem bright. It could be in the future that Libra turns out to be one among those highly hyped project which comes to nothing in the end and is soon forgotten. If Facebook wants to avoid such an outcome, it obviously needs to make drastic changes to the Libra project.