Facebook has been under a lot of heat recently. With the announcement of Libra, its stablecoin, this summer, the company has met heavy criticism and disapproval. According to reports, David Rutter, CEO of R3, a software firm, stated Libra’s announcement to be “stupid and naive”.
The statement was made during a company press event in London where Rutter, an advocate of blockchain himself, stated that Facebook’s stablecoin announcement brought about the massive shuffling of the examination process of blockchain and cryptocurrency exchange services. Rutter dismissed Facebook’s quick to do approach as a rushed affair without thorough understanding.
Facebook Marching Through
Libra’s recent activities indicate that the company has turned a blind eye towards skepticism. If reports are to be believed, the Libra Association has submitted over 30 projects and over 51,000 transactions on the network in the short span of two months.
The company is also looking forward to the release of new features for the stablecoin including a new methodology for Contributor License Agreements and the setting up of a Technical Steering Committee for the supervision and management of design and development in the network. Facebook recently announced the launch of Facebook Pay, a fiat-backed payment system facilitating payment transfers across Facebook, WhatsApp, Messenger, and Instagram.
Withdrawals, Ridicule, and Dismay
The comment comes after PayPal’s recent withdrawal from the Libra Association. Rumors have been rife since the company’s non-appearance in a Libra meeting helped establish the truth. It has been heavily guessed that the reason behind PayPal’s withdrawal stems from Libra’s dissociation with the pre-work of regulators. Payment exchange companies like PayPal can’t function properly under the heat of regulatory examination. Rumors have also surfaced citing Libra’s control over the government’s financial aid. Apart from PayPal, other companies have also been demonstrating wavering loyalty including MasterCard, Visa, and Stripe.