After the electronic business platform Shopify, now also another major player, that is Tagomi, seems ready to enter Libra Association, the body called to regulate the future of Facebook's stablecoin. To report this new news was TechCrunch, according to which the formal announcement is now about to be issued. Once formalized what is happening, just Tagomi would be the 22nd and final actor in the project. However, news has not yet come from Libra.
Who is Tagomi
Tagomi is a Chicago based digital asset broker. It was founded by Jennifer Campbell, a former Union Square Ventures investor and member of the Libra Association. In particular, the company, which employs 25 employees located in 5 offices, stood out for the disruptive action carried out in the cryptocurrency sector, in the form of a platform reserved for large investors. Up to now, according to CrunchBase, it has raised 28 million dollars, indicating itself as a real point of reference in this regard.
What is happening?
Tagomi's announcement confirming TechCrunch's indiscretion came less than a week after joining the Shopify project. This is a very important fact, especially in light of the major defections which had affected some high profile members like Mastercard, Visa, eBay, PayPal, Mercado Pago and Stripe. Abandonments that sow many doubts about the future of Mark Zuckerberg's stablecoin.
Tagomi, therefore, like all the members who join the project, will pay $ 10 million which will fund the development of the platform. Precisely this obligation has also been the subject of strong criticism, especially by Ajay Banga. The Mastercard CEO, in fact, underlined how after a first phase in which the project had been cloaked with good intentions, now it has gone to a second one in which it becomes clear how the engine of the operation is to make profits. As indeed it seems quite logical.
The institutional side
As recalled by Banga, Libra had been presented as a project aimed at increasing financial inclusion. A focus that is now, however, strongly questioned by several voices. Indeed, many governments and financial market regulators have voiced concerns about Facebook's cryptocurrency. Fears deriving precisely from the ambitions that characterize the project and that were expressed within the White Paper issued on the margin of the transaction to entice investors to join.
The main concern is precisely the consequences that the launch of Libra could have for the traditional financial world. Above all, the United States immediately made it clear that it did not like the project. Not just Donald Trump, which has always been against cryptocurrencies, but even Congress has in fact put itself across the Zuckerberg road.
A disagreement that, according to many observers, would have prompted many first-rate names to get off the ship in recent months. The evolution underway in the same policy towards stablecoins was worth little. Evolution evidenced by the recommendations that recently the Financial Stability Board (FSB) sent to the G20, asking for their regulation. For the FSB it is indeed imperative to resolve the challenges related to cross-border payments. However, it remains to be seen what the responses from governments increasingly concerned about a breakdown of the current financial order will be.