New York-based crypto brokerage firm Tagomi has announced its plan to join the Libra Association; the entity responsible for Facebook’s stablecoin.
Accordingly, Tagomi will be the 22nd member in the association. The members will likely contribute nearly $10 million to the Libra Reserve, which maintains the assets supporting the cryptocurrency.
The broker has secured $28 million so far, which indicates that $10 million is a big sum for the startup that was founded in 2018.
Tagomi commented on the value proposition, stating:
“Executing large orders of digital assets is really hard. Tagomi makes it simple.”
In addition, Tagaomi owns one of the highly coveted BitLicenses granted by New York’s Department of Financial Services.
Earlier, Cryptolydian reported Switzerland’s President Ueli Maurer as saying that Facebook’s cryptocurrency Libra has failed in its current form and should be amended before sending it for regulatory approval.
“I think Libra does not have a chance in its current form as the central banks will not accept the basket of currencies supporting it.”
However, Ayman Al-Banna, senior advisor at MAG Consulting said Libra has failed in regulations but the cryptocurrency is technically going well, especially after having passed tests.
“This will open the door of surprises widely before the cryptocurrency,” Al-Banna said.
On 13 October, Mark Zuckerberg, Facebook CEO, spoke before the US House of Representatives Subcommittee on Financial Services.
However, policymakers have expressed concerns, citing Zuckerberg’s vague responses on the digital currency:
“I actually don’t know if Libra is going to work.”
EU Unable to Decide on Libra
The cryptocurrency plan issued by Geneva’s Libra Association raised worries among regulators as regards its potential impact on the global monetary policies and financial sector.
Meanwhile, the European Union (EU) is currently unable to decide what to do with Libra; the digital currency which Facebook is expected to issue this year.
For his part, Valdis Dombrovskis, Executive Vice-President of the European Commission, said in a memo that the Libra Association has failed to answer the questions provided by the EU.