Less than a month after redesigning its cryptocurrency project, Facebook’s Libra has received a significant boost. According to Friday reports, Singapore’s government-owned investment company, and two other companies have become the latest members of the Libra Association.
Temasek Offers A Differentiated Position
The two other companies that joined the association today include crypto-asset investment firm Paradigm, and Slow Ventures, a San Francisco-based venture capital and private equity firm
The companies are expected to pay the sum of $10 million as part of the requirement of becoming a member of the Libra Association. However, the report did not reveal if they have remitted the fund.
The addition of Temasek makes the investment vehicle one of the biggest backers of the Libra project with a “differentiated position” since the exit of prominent members like PayPal, Mastercard, and Visa.
Temasek is one of Singapore’s two state-owned investment companies, and it is reportedly worth $313 billion Singaporean dollars or about $219 billion. The investment behemoth owns and controls multibillion-dollar stakes in big and small companies worldwide, including Singapore Airlines Ltd and Chinese e-commerce giant Alibaba Group Holding Ltd.
The company’s involvement with the Libra project is part of its effort to explore the blockchain industry because of its transformative potentials in remittance.
Chia Song Hwee, the deputy CEO of Temasek International, was quoted saying:
“Blockchain technology can play a transformative role in payments networks by enhancing cost efficiencies, creating new business opportunities, and accelerating financial inclusion. Our participation in the Libra Association as a member will allow us to contribute towards a regulated global network for cost-effective retail payments.”
Libra Changes Game Plan; Appoints First CEO
The social media giant received multiple backlashes and probes from financial watchdogs around the world after announcing its ambitious plans to create the Libra cryptocurrency.
Regulators fear the stablecoin would negatively affect the global financial system, considering that Facebook already has 2.6 billion people under its belt. That became a major setback for the launch of the cryptocurrency.
Due to the continuous unfavorable reactions from authorities, Facebook announced last month that it had redesigned the Libra project to make it less ambitious in order to gain regulatory approval.
Following the change in its game plan, the Libra association announced last week that they had appointed Stuart Levey of HSBC as its first Chief Executive Officer (CEO). Per the report, Levey will step down from his role as HSBC’s Chief Legal Officer to lead the Libra project.