Facebook Launches its Digital Currency Libra Despite Exit of Prominent Backers

Notwithstanding the exit of several prominent bankers, Facebook has gone ahead with the official launch of its ambitious digital currency Libra. Facebook Libra launched on Monday with only 21 of the initial 28 charter members coming on board to form the Libra Association.

Companies like Mastercard, PayPal, Visa and more recently, Booking.com, backed out recently over worries of the increased regulatory scrutiny they were subject to. Regulatory authorities around the world have raised concerns of how the social networking leader will successfully ensure data privacy and security of Libra users, and prevent potential misuse for money laundering via Libra.

Facebook Libra is a digital currency that can be used by Facebook and WhatsApp users for making and receiving cross-border payments. The digital currency is expected to be overseen by the Libra Association based in Switzerland and Facebook would, theoretically, not have any ownership or stake in its operations or management.

Despite the creation of the separate Libra Association, lawmakers worldwide are skeptical of trusting Facebook with payments and payment information when it has been in the headlines for a failure to safeguard other personal information of its users repeatedly.