Singapore state-backed investor joins Libra Association
Latest indication of projects shift to cooperate with, rather than compete against, nation states
Throughout 2020, the Facebook-backed Libra Association has sought to change tack from its controversial opening gambit in 2019.
Instead of developing a unified stablecoin available to a ready-made user base of 2 billion people, the consortium is creating a number of stablecoins so as not to excite regulatory scrutiny and pressure.
By the company's own admission, the reaction of politicians and regulators to the initial project was intense. With a revised whitepaper and the appointment of a former under secretary of the US Treasury for Terrorism and Financial Intelligence as its new CEO, Libra is hoping to work with nation states, rather than compete against them.
Friday’s announcement that Temasek Holdings will join the Libra Association would indicate that this change in strategy is beginning to work. The Singapore investor is the first state-backed entity to join the project.
A major player in the Asian financial world, Temasek is run by Ho Ching, a senior Singaporean civil servant and the wife of Prime Minister Lee Hsien Loong.
The firm’s deputy CEO stated: “Our participation in the Libra Association as a member will allow us to contribute towards a regulated global network for cost-effective retail payments. Many developments in the space excite us – we look forward to further exploring the potential of the technology.”
The Libra Association in term welcomed Temasek, referring to its “efforts to support and advance the use of blockchain technology across a range of use cases, asset classes and sectors.”