What is the Libra Association going to do, really? – TechCrunch

When Facebook unveiled Libra a few days ago, the company also announced the Libra Association, a not-for-profit that will oversee all things Facebook wants to make sure that everyone is aware that Libra was created by Facebook but isn’t controlled by Facebook. And yet, given Facebook’s reput…

What is the Libra Association going to do, really? – TechCrunch

Curated via Twitter from TechCrunch’s twitter account….

Facebook launched a subsidiary called Calibra that is responsible for its cryptocurrency projects.

The subsidiary has to comply with cryptocurrency and financial regulation, but not Facebook at large.

When Facebook unveiled Libra a few days ago, the company also announced the Libra Association, a not-for-profit that will oversee all things Libra.

This isn’t the first time Facebook is creating a subsidiary to handle peer-to-peer payments.

Facebook wants to make sure that everyone is aware that Libra was created by Facebook but isn’t controlled by Facebook.

If you compare Calibra with other peer-to-peer payment services, PayPal is regulated as a money transfer service in the U. S.

Square Cash also complies with a long list of money transmission regulation. In the U. S. in particular, each state has its own set of regulation when it comes to financial services.

And yet, given Facebook’s reputation, it seems useful to evaluate the project and the company’s promises — should we trust Facebook?

Facebook created a subsidiary called Facebook Payments Inc.

In addition to contributing to the development of the project at the protocol level, Calibra will release a wallet and build an integration with WhatsApp and Messenger.

Creating a subsidiary makes this process easier for Facebook.

And Calibra also has to deal with cryptocurrency regulation, which is another source of troubles.

Link to original article….

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