The Libra ordeal is unlike any other. A social media giant, at the firm center of Silicon Valley, begins working on a digital currency in complete secrecy. Not only is an area in Menlo Park cordoned off for the project, but Facebook slowly begins picking off people from technology, finance and blockchain companies to build its project.
During the fanfare and fright that preceded the unveiling of Libra in June, there were reports of the social media giant approaching cryptocurrency exchanges. Based on this association, one would think that Facebook was working on a tradeable coin, rather than a currency for the “unbanked.” After-the-fact, it seems, that exchanges are out of the question, or even opposed to the very foundations of Libra, but their brief tryst with exchanges does build intrigue, where do cryptocurrency exchanges fit into the Libra paradigm?
PENNED in the PAPERS
Months prior to the official Libra release, several reports surfaced of Facebook executives “secretly approaching,” cryptocurrency exchanges in order to build eventual platforms for their digital currency to co-exist. According to a pivotal piece by the New York Times’ crypto-focused journalist Nathaniel Popper, Facebook wasn’t the only messaging application getting in the good books of exchanges to seal a deal, so to speak.
The February piece, a full four months prior to Libra’s official release cited “people briefed on negotiations,” between Facebook and not financial regulators or central bank officials but cryptocurrency exchanges. Facebook’s conversations with said exchanges went so far as to reveal their estimated launch date for the then ‘GlobalCoin,’ which was marked for the first half of 2020, subsequently delayed to the later half, owing to concerns from authorities.
A possible benefit to Facebook, if this partnership [in whatever form] with said cryptocurrency exchanges manifests,