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Temasek of Singapore, one of the world’s largest institutional investors, has supported the Pound, the Facebook-led digital currency, in a development that could help breathe new life under fire.
The listing of the state-backed investment company in the Libra Association, announced Thursday night, comes after the association lost several high-profile members last year over concerns it could threaten the financial system, as well as privacy and money laundering fears.
Temasek’s involvement makes him the first member based in Asia and the first state-backed investor to participate in the project. Singapore is recognized as a financial technology hub in Asia and the government has encouraged and supported crypto-related technologies and financial technology innovation.
Your membership in the Libra Association will allow you to “contribute to a regulated global network for profitable retail payments,” Chia Song Hwee, deputy executive director of Temasek said in a statement.
The news comes just weeks after Libra announced plans to narrow the scope of its original vision to appease global regulators, due to concerns that the network could become a hotbed for money laundering and other illicit activities. .
Several high-profile members, including Visa, Mastercard and PayPal, pulled out of the project last year over such concerns, while Facebook Chief Executive Mark Zuckerberg was questioned by Congress about the plans.
The move by Temasek, a prolific tech investor, came despite cautious comments about the project by the de facto central bank chief in Singapore last year.
Ravi Menon, managing director of the Singapore Monetary Authority, said in September that Libra posed global financial risks that regulators had to address.
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But the association has said it will now oversee its network, and the groups joining it, more closely, giving up on initial plans for a more “decentralized” system that developers can join without investigating.
Central banks around the world highlighted many regulatory challenges when Libra was first announced, said Zennon Kapron, director of the Asia-focused Kapronasia research group.
“The new version of the Libra white paper aims to correct many of those problems,” he said, adding that Temasek was unlikely to join a project that MAS failed to approve. “With Temasek being the first Asian member, it could help cement Singapore as a center for financial technology if the project is successful.”
In addition to Temasek, San Francisco-based cryptocurrency investor Paradigm and private equity group Slow Ventures also joined the organization, with a total of 27 members. Existing members include US venture capital firm Andreessen Horowitz, Swedish music streaming service Spotify, e-commerce platform Shopify, as well as US companies Uber and Lyft.
Earlier this month, the association also announced the appointment of heavyweight penalties Stuart Levey, HSBC’s chief legal officer, as its first independent chief executive officer beginning in July. Former undersecretary of terrorism and financial intelligence of EE. USA, You will be asked to get the green light from USA. USA And other vigilantes for the project to continue.
Additional reports from Stefania Palma in Singapore
