While introducing a new payment system or currency that is meant for replacing the old one, banks play the most vital role that cannot be replaced by any other institution. Previously Facebook had partnered with MasterCard, PayPal, and Visa the most robust payment networks, but it had missed out the most the critical institution to partner with.
Some of the most important banks of the world like Wells Fargo, Citi Group, JP Morgan, etc. were strikingly missing from the list. But late is better than never now Facebook has partnered with the biggest bank of the US.
As per the recent reports, the Libra association is holding talks with various banks to participate in their governing body. Although it is still not revealed by the company with which bank, they are in negotiations.
Although the CEO of Citi Group, Michael Corbat, has told in a conference recently that they will consider joining the Libra Association if they are approached. He also has made it clear that the company did not contact them before the launch of Libra Association. He also said he has faith in cryptocurrency and blockchain and the bank will soon offer more access to digital currencies for its customers. He even said the opaqueness of the cryptocurrencies and AML laws are prohibiting the Citi group from sending and receiving digital currencies for its users.
The chief of policy and communication of Facebook Dante Disparte has told they are in talks with banks both in the US and abroad, but he did not denote any name of the banks. He also mentioned that they need big lenders who can also join as a banking partner and founding member to manage their currency reserve. He further added banks have a vital role to play in their association.
Although recently, Facebook has declared that they will help 1.7 billion users from across the world to send and receive money without the need for any traditional financial institution in a cheap and faster way.
That fact that one cannot disregard is banks around the world, and the US is highly regulated. So, it makes a sense why banks are hesitant to adopt established cryptocurrencies, so for them to get associated with pre-launched “stablecoin” will take a lot of preparations.