According to a report by BBC yesterday (Tuesday, October 22), each of the twenty founders agreed to produce investment money amounting to $10 million, as confirmed by Facebook during Libra’s launch in June. However, no member has remitted the commitment money so far. Besides, when the Libra Association had its first general assembly last week, the investment matter did not form one of the subjects under discussion.
All the same, some Libra Association member companies, interviewed by the BBC, said there was no timeline set for the $10 million investment fee, and they would invest in the project when asked to do so.
One member said:
“Rather than collect a bunch of money from a bunch of people and then figure it out…the feeling is that we needed to form, ratify a budget, and then figure out how to fund that budget, rather than the other way around.”
Zuckerberg to Testify Before Congress
Facebook CEO, Mark Zuckerberg, is expected to appear before the U.S. Congress today (Wednesday, October 23, 2019) to speak on Libra. In written testimony, the CEO revealed that Facebook will “not be part of launching the Libra payments system anywhere in the world until US regulators approve.”
Zuckerberg has always insisted that the Libra project is “independent” with no control from the partners. He is, anyway, aware that Facebook faces a reputational crisis that Libra has to overcome if the stablecoin is to win U.S. approval.
However, on interesting note, a source at a founding member company told the BBC that they have noticed some sinister moves on the part of Facebook.
“We’ve seen Facebook start to move away from the association a little bit, maybe, but it’s still a challenge for them, definitely,” the source said.
So far, the Libra Association has been quiet on matters regarding its funding sources. The Association has not revealed whether it receives financial support from any other source apart from Facebook.
Featured image: pymnts.com