How dominoes began to fall for Facebook’s Libra
Departure of members casts doubt on future of digital currency
When Facebook Inc. unveiled ambitious plans in June to spearhead the creation of a global digital currency, co-founder David Marcus promised unprecedented cooperation among some of the biggest names in technology and payments.
“Everyone will play their role,” the Facebook executive said of the 28 initial founding members of his Libra project.
But this month, Facebook was blindsided when seven of the high-profile companies, including EBay Inc., PayPal Holdings Inc., Visa Inc. and Mastercard Inc., stepped back from the project, leaving its future
Here is a timeline of events surrounding Facebook’s efforts to create a global digital currency called Libra.
January 2018: Facebook founder Mark Zuckerberg says in a New Year’s resolution note that he intends to “study the positive and negative aspects” of cryptocurrencies.
May 2018: Facebook establishes a division to “explore how to best leverage blockchain” technology across the platform. David Marcus, the former president of PayPal Inc. and head of Facebook Messenger, is announced as leader of the team.
June 2019: Facebook announces plans for a new global digital currency called Libra, backed by 27 other “partners,” including payments companies, e-commerce groups and venture capital companies.
July 2019: The plan draws immediate scrutiny from global regulators, central bankers and politicians, such as the Group of 7 and President Trump. They cite money laundering and terrorism financing concerns, as well as the risks it could pose to wider financial stability.
July 2019: Marcus faces two days of bruising hearings in Capitol Hill from hostile politicians, who warn that Facebook should not be trusted to run a digital currency following its recent data privacy scandals.
August 2019: The European Commission launches an antitrust investigation into Libra, amid concerns that the currency could unfairly disadvantage rivals.
October 2019: Zuckerberg is called to testify on the project before Congress later this month. Meanwhile, two Democratic members of the Senate banking committee write to Visa, Mastercard and Stripe warning that their existing businesses will come under increased regulatory scrutiny if they continue their involvement. A wave of companies say they are quitting the project ahead of the Libra Assn.’s first board meeting Monday .