Although regulators and lawmakers are breathing down hard on Facebook for its Libra Coin, it seems the development of Libra is persisting breezily in the face of serious backlash. In an update released on the 3rd of October, the Facebook headed Libra association announced on how exciting it is to witness the level of development of the cryptocurrency.
Furthermore, it was made known that a “pre-mainnet” has been launched that will enable the businesses in the Libra association to interconnect their blockchain nodes with one another. Noting that some of the members have connected their nodes already for inter-communication. More partners are expected to come on board soon.
The body is also deliberating on ways to guarantee Libra wallets can make interoperability possible. This is seen as crucial to operating the network successfully. It seems that there is a small number of third-party developers building upon the Libra network. A move the Libra association appreciated.
Fear among partners over regulatory backlash
Although the Libra association is reporting positive updates on the development, there are still concerns that some of the partners might pull off the project. Going by a Financial Times report, it said that one of Libra’s high profile potential partners Uber is reportedly close to pulling the plug on its interest in the Libra project.
In addition to that, the company skipped a crucial meeting scheduled for Washington D.C. There are concerns that Facebook is not doing enough to address the concerns of stakeholders. Many stakeholders are pointing out regulatory concerns.
There are already reports that PayPal another stakeholder in the project has bowed out with some of the supporters of the project also withdrawing their support. This has raised more concerns as Facebook has been under scrutiny. It appears scrutiny has been ongoing since announcing the launch of the project back in June.
Regulators and lawmakers have been concerned about how regulations will apply to the Libra coin amid issues of privacy.
The immediate concerns for developers working on various Libra-based applications are known. However, expectations are very high for the project overall.
Developers have expressed fears that failure to make Libra succeed could let other countries steal the match on them. In turn, these are countries not subject to U.S. regulations.
The Developers’ Dream
Developers have found the project an exciting venture with the attention to detail paid to the project. The project has a working open-source wallet. Other features include a working testnet, a vibrant community as well as a communication channel, and a faucet to offer free test money.
However, the downside is that as the project is still at the development stage. Additionally, protocols may be altered quickly which is normal for a project at such a stage.
The race to a world standard cryptocurrency is heating up. This has been a concern of members of Congress. Furthermore, the U.S. cannot afford to lack behind in the race to develop a U.S. cryptocurrency. Failure to do so will give other countries the edge, something the U.S. will not like to happen.