The Libra Association is the governing body of stablecoin proposed by Facebook. The Association held its inaugural meeting in Geneva, Switzerland. According to a Reuters report on October 14, the consortium reiterated its interest in creating stablecoin. This could be balanced by various supposed stable fiat currencies. In addition to clearly indicating their interest in the project, the 21 members of the consortium also established a five-member board of directors. They also agreed to the provisional articles of association. The articles that describe the way of governing the organization under Swiss law.
According to reports, most significant decisions require a majority vote of the Board. Also, a proposed change to a reserve member or a regulatory body must be approved by a two-thirds majority. The board consists of five members. This includes Facebook’s David Marcus, non-profit Kiva Micro funds representatives, PayU, Xapo Holdings Limited, and Andreessen Horowitz, which is a venture capital firm. Today, the meeting held in Geneva after the cluster withdrawals from former members of the consortium. Earlier today, the owners of travel website such as booking.com, agoda.com, priceline.com, and Kayak.com, withdrew from the Libra Association.
Other major companies related to payments and trade have also left the association, including MasterCard, Stripe, Visa, eBay, and PayPal. According to Reuters, the remaining payment company in the Association is PayU, which is based in the Netherlands. It is said to have no operations in the US, Canada, and many parts of Africa and the Middle East. The Libra Association is optimistic about continuing the project. The head of policy and communications, Mr. Dante Disparte, at the Libra Association, told Reuters that the recent escape of major supporters was a correction; this is support for us. However, Disparte further acknowledges that as regulators continue to review the project, coins may face delays. Earlier today, Mr. Steven Mnuchin, the US Treasury Secretary said that the two companies left Libra because it did not meet US anti-money laundering standards. Also, if the project is not compliant at the start-up. This could lead to action by the financial crime enforcement network that is under the US Treasury purview. Mark Zuckerberg, the Facebook plans to testify at the hearing of the House enforcement Financial Services Committee.