Since Facebook announced in July the launch of its own cryptocurrency called Libra, the problems haven’t ceased to come up. This announcement generated skepticism in policymakers worldwide, including the head of the Federal Reserve of the United States and the president of the United States, Donald Trump.
This evolution of events made clear that Facebook wasn’t prepared for the policy problems that arose following the launch of Libra. However, and to face the situation, the company decided to hire the services of FS Vector, a lobbying team based in Washington DC.
FS Vector specializes in regulatory compliance issues, public policy issues and business development strategies for fintech, blockchain, cryptocurrencies and financial services.
Besides, the person who will be responsible for lobbying Facebook is John Collins, former head of the policy division at crypto exchange Coinbase, who is also one of the partners of FS Vector. In this way, Facebook is committed to an expert to solve the problems generated by the launch of Libra, a cryptocurrency that has been considered a disaster in policies terms.
Libra in Focus
In general, cryptocurrencies are not usually subject to regulations, but the case of Libra is different. But, because it was launched by a company of the magnitude of Facebook, there must be regulatory scrutiny. Also, there are doubts about the extent of personal information that will be requested from those who purchase the token.
Solving all Libra’s regulatory problems will be an arduous task for Facebook, but for many, the hiring of Collins was a wise decision, since he is someone who fully knows the environment.