Despite all the resources that have been put into the Libra token and the Calibra wallet, there have been significant challenges since the white paper was launched, most of which have to do with regulation as many lawmakers believe the Libra token may undermine local economies or could be used for illegal activities. In response to this, the lobbying team for Libra has gone around the world meeting with leaders and heads of financial institutions to try and convince them of the value of the upcoming token. Despite this, Libra has continued to face significant challenges such as being denounced by powerful lawmakers as well as the loss of MasterCard, who was a member of the Libra association.
On October 14, 2019, it was announced that Booking Holdings, which is a major travel company, has withdrawn from the Libra Association, following in the footsteps of many others before it and this is yet another setback for Libra.
Booking Holdings is a travel company does behind the websites booking.com, kayak.com and Priceline.com and so on and with this departure, the Libra association only has 21 out of the initial 28 founding members. Booking.com’s parent company has been part of the initial creation of the Libra Association in June 2019.
Their CEO, Glenn Fogel, stated at the time that he believed that cryptocurrencies would become the future of payment and even doubted that fiat currency would be widely used in the future.
“When Bitcoin became well known, many questioned its legitimacy, and while the jury is still out on the future of Bitcoin, I do believe currencies with a blockchain base will continue to surface and may become more widely accepted across the globe, especially outside the U.S., which has a well-accepted credit card payment system,” Fogel said.
It has been speculated that the reason why several Libra association members have exited the project is because they do not wish to incur the wrath of any regulatory bodies towards their own business due to their support of Libra. This is because the Libra token is bound to upset the traditional financial systems and this could cause backlash from authorities.