Vodafone Exits Facebook Libra Cryptocurrency Project; Might Focus On M-Pesa

What Is Facebook Libra Project?

The Libra project is a blockchain digital currency proposed by the social media company. For now, the currency or the blockchain network isn't functioning yet. There is only a rudimentary experimental code that has been released. Initially, Facebook planned for launch in 2020, but it's still uncertain if it'll take place.

 

The Facebook Libra project was formed into the Libra Association in October last year in Geneva, where Facebook and 20 other companies pitched in together. Vodafone is the first company to quit the project after the Association was formed. Many are skeptical of the cryptocurrency project linking it with previous scandals like Cambridge Analytica and other data breaches.

Some of the US senators have even called the project as ‘dangerous' and ‘delusional' as it accumulates massive amounts of user data. Any data breaches or selling of data to third-part agents could result in huge monetary losses and it could be hard to trace the hacker.

Vodafone Quits Facebook Libra Project

"We can confirm that Vodafone is no longer a member of the Libra Association," the Association said in a statement. "Although the makeup of the Association members may change over time, the design of Libra's governance and technology ensures the Libra payment system will remain resilient."

The telecom joins the list of companies like PayPal, Mastercard, Mercado Pago, eBay, Stripe, Visa, and Booking Holding who have withdrawn from the controversial cryptocurrency project. Most of the companies have cited concerns over heightened regulatory scrutiny, says the Coindesk report.

A Vodafone spokesperson said that the teleco it can most effectively bring affordable financial services to the world's poor by focusing on M-Pesa for the moment. "We have said from the outset that Vodafone's desire is to make a genuine contribution to extending financial inclusion. We remain fully committed to that goal," the spokesperson said.

What Happens To Facebook Libra Cryptocurrency?

Several tech giants and other big financial firms have pulled out of the Facebook project. The Libra Association said: "The Association is continuing the work to achieve a safe, transparent, and consumer-friendly implementation of the Libra payment system." The Association claims to have more than 1,500 entities expressing interest to join the digital currency project.

Facebook CEO Mark Zuckerberg has testified before the US Congress about the Libra project. The CEO defended the idea, but also acknowledged the struggles and hurdles on the way. Libra notes that its doors are always open. Its goal to "build a financial ecosystem that can plug in and empower billions of people" will hopefully be achieved.