Vodafone Group Withdraws from Libra Project, to Scale Up M-pesa

Vodafone Group Withdraws from Libra Project
  • Facebook unveiled Libra in June 2019
  • M-pesa was founded in 2007
  • M-Pesa allows users to deposit, withdraw, transfer money and pay for goods and services easily with a mobile device.

Vodafone Group has quit Facebook’s cryptocurrency project, Libra, says it will make more impact through its mobile payments platform M-pesa.

However, the group said it has not ruled out the possibility of future co-operation.

“Vodafone Group has decided to withdraw from the Libra Association. We have said from the outset that Vodafone’s desire is to make a genuine contribution to extending financial inclusion. We remain fully committed to that goal and feel we can make the most contribution by focusing our efforts on (mobile payments platform) M-Pesa,” a Vodafone spokesperson said as reported by CoinDesk.

“We will continue to monitor the development of the Libra Association and do not rule out the possibility of future co-operation.”

Other fintech companies that have ditched the project include PayPal, Mastercard, Stripe, Visa, eBay and MercadoPago.

In Kenya, the Central Bank of Kenya has warned the public that cryptocurrencies such as bitcoin are not legal tender.

According to CBK, some of the risks associated with buying, holding or trading virtual currencies include the following:

 Transactions in virtual currencies such as bitcoin are largely untraceable and anonymous making them susceptible to abuse by criminals in money laundering and financing of terrorism.

 Virtual currencies are traded in exchange platforms that tend to be unregulated all over the world. Consumers may, therefore, lose their money without having any legal redress in the event these exchanges collapse or close business.

 There is no underlying or backing of assets and the value of virtual currencies is speculative in nature. This may result in high volatility in value of virtual currencies thus exposing users to potential losses.