Visa CEO: Visa Still Interested in Developing Libra With Facebook

Published at: Oct. 24, 2019

Alfred F. Kelly, CEO of major payment processor Visa, has said that the company is still in discussions with Facebook on the Libra project.

In an interview with finance and economics-focused publication Economic Value on Oct. 24, Kelly assured the interviewer that Visa still maintains a close relationship with Facebook on the subject, as it believes that digital currencies provide safer payments to more people and places. Kelly said:

“As a curious and open company — and given the leadership we have in the payments ecosystem — we want to engage in everything in the payment space until we reach a point where we believe our engagement is no longer positive.”

Kelly continued by saying that the Libra project needs more time for full implementation since it is a disruptive initiative and the proposal involves addressing regulatory requirements. He further noted that Libra is not centralized and that although the proposal "was developed by Facebook, all members of the Libra Association have the same decision-making power and control of the project."

Dealing with the unbanked issue

In its talks with Facebook, Visa focused on the creation of a payment system that could find a solution to the financial inclusion issue, given that 1.7 billion adults worldwide reportedly remain unbanked, according to Kelly. He said:

"In the conversations we had with the Facebook people, we tried to create something that could bring these people into the system faster."

Policymekers’ harsh criticism of Libra

Facebook and the Libra project have been of supreme concern for both global regulators and industry stakeholders in recent months. The former remain disquieted by Libra’s potential to undermine the sovereignty of national currencies while the latter question the project’s resiliency in the face of regulator opposition.

On Oct. 23, Facebook CEO Mark Zuckerberg testified before the House Financial Services Committee on Libra aiming to assuage policymakers’ concerns regarding Libra’s launch. During questioning, Zuckerberg said that Libra’s founding member, Facebook, might be forced to withdraw from the Libra Association should the association decide to launch the token without approval from regulators in the United States.

As previously reported, the Libra Association lost seven partners out of the original 28. Namely PayPal, Visa, Mastercard, Stripe, eBay, Mercado Pago and Booking decided to leave the consortium.

Tags
Altcoin
Stablecoin
Payments
Facebook
Libra
Visa
Related Posts
Bank of England Governor Carney Defends Facebook’s Libra Stablecoin
Bank of England Governor Mark Carney has defended Facebook’s choice to create a new currency. Canadian news outlet TheStar reported Carney’s remarks on Oct. 15, noting that he highlighted the shortcomings of the current traditional financial system. Because of the inefficiency of the payments, Carey thinks that firms such as Facebook should be involved in projects like Libra. The current payments industry is lacking More precisely, he reportedly criticized the high costs of moving money, saying that they penalize small businesses and can cost firms as much as 200 basis points per transaction, besides being processed too slowly. According to …
Altcoin / Oct. 15, 2019
European Commission Exec Questions Facebook’s Libra Stablecoin
Executive Vice President-Designate of the European Commission, Margrethe Vestager, has questioned the motives behind Facebook’s forthcoming Libra stablecoin. In an interview with the Financial Services Union of Denmark, a fragment of which was published on Oct. 1, Vestager addressed the possible impact from Libra’s launch — such as competition due to Facebook’s multimillion user base and distortion of competition in the payment services market. Vestager argued: "It's a pretty new thing that we are starting to question something that does not exist yet. But it is so far in the future that we cannot tell if this is going to …
Altcoin / Oct. 1, 2019
3 Key Takeaways From Switzerland’s New Stablecoin Guidelines
Switzerland’s Financial Market Supervisory Authority (FINMA) has published a stablecoin-focused supplement to its existing guidelines for initial coin offerings (ICOs). In a news release published on Sept. 11, FINMA takes note of the steadily proliferating issuance of stablecoins since mid-2018, as well as confirming that the Geneva-based Libra Association had sought an assessment by FINMA for its stablecoin project under Swiss law. “Same risks, same rules” FINMA’s introductory remarks outline that the watchdog treats stablecoins as it does other blockchain-based tokens, with a focus “on the economic function and the purpose of a token” and with a “same risks, same …
Altcoin / Sept. 11, 2019
Binance Research: Facebook’s Libra Could Spark Additional Cryptocurrency Volume
Binance Research, the research arm of major cryptocurrency exchange Binance, claims that Facebook’s Libra stablecoin could spark additional cryptocurrency volume in a post published on its blog on June 18. In the announcement concerning the release of the full report, Binance Research claims: “Libra could spark additional cryptocurrency volume due to increased accessibility from both institutional players and everyday retail users.” Furthermore, the post also notes that the researchers anticipate that the Libra will have a significant impact on both local and global markets, financial and economic industries, as well as in the cryptocurrency space. This influence will manifest after …
Altcoin / June 18, 2019
Libra Might Become Unrecognizable by Navigating Regulatory Concerns
Amid the regulatory storm facing Libra, the project’s hierarchy is looking to change one important detail of the payment system: using fiat-pegged stablecoins rather than a token supported by a basket of national currencies. The Libra Association says such considerations are part of efforts to create a more agile payment platform. Meanwhile, the furor over the controversial Libra has begun to take a more political undertone, both within and outside the United States. Arguments for and against the project now seem to include issues surrounding the trade war between the U.S. and China. In Europe, China’s response to Facebook’s crypto …
United States / Oct. 28, 2019