Libra, the US Treasury Secretary explains why the project is in trouble

La escape from the Libra project is it over or is it just starting out? This is what many analysts are asking, after seeing some Facebook cryptocurrency partners abandon the ranks and raise doubts about the sustainability of Zuckerberg's plans.

Meanwhile, in a recent interview with the CNBC broadcaster, the US Treasury Secretary Steven Mnuchin stated that perhaps Libra's exiled partners may have feared strong regulatory pressure. Mnuchin admitted he had met Libra representatives and their partners on several occasions and added in no uncertain terms that if those who approached the Facebook cryptographic project are not able to meet stringent government standards against money laundering, they will be subject to specific regulatory measures.

Perhaps it is this "threat" that has discouraged some operators. "I think they realized that they are not ready, they are not up to the situation"- said Mnuchin, to then add that he assumed that some of the partners worried and withdrew because they were aware that they could not meet these standards.

It is true that the timing is too coincidental to be coincidental. The exodus of Mastercard & co. it accelerated after some US senators sent not too veiled concerns in a letter to the CEOs of companies that are members of the Libra Association. One such letter shared online was addressed to Stripe CEO Patrick Collison, coming from Senators Brian Schatz and Sherrod Brown, who said Facebook is trying to act as a financial authority without being regulated.

Recall that to date PayPal, Visa, Mastercard, Stripe, eBay, Booking Holdings, owner of Kayak and Mercado Pago have announced their departure from the project. Five of these seven are global payment companies that would have been very useful in Libra, and which will now deprive the project of important know-how.

Meanwhile yesterday, the Libra association, or what remains of it, had its first official meeting of the board of directors in Geneva, Switzerland. The social media giant has officially carried out its plans despite strong criticism from US authorities and politicians and the recent abandonment by some of the most authoritative partners.