Vodafone is the latest partner to bail from Facebook’s Libra project

Facebook’s digital currency initiative Libra continues to fall apart as British telco Vodafone becomes the latest partner to bail from the project.

In a statement, Vodafone said: “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 that we can make the most contribution by focusing our efforts on M-Pesa. We will continue to monitor the development of the Libra Association and do not rule out the possibility of future cooperation.”

Digital currencies are beginning to gain traction following the success of Bitcoin. The king of cryptocurrencies is quickly becoming a modern store of value but it’s looking unlikely to be adopted by many average consumers for daily purchases.

Part of the reason for the lack of day-to-day use of Bitcoin is its slow transaction times and poor scalability. Advancements, particularly off-chain “layer two” solutions like Lightning Network, are helping to fix these problems but at the cost of decentralization and security.

Behind most digital currencies is a blockchain. The so-called “trilemma” with blockchains is that, in order to achieve scalability, you must sacrifice decentralization or security. Bitcoin is seen as a reliable store of value because it’s secure and its decentralization properties also make it appealing in a world of global uncertainties, censorship, and currency manipulation.

Your average consumer only cares that a transaction is fast and cheap while also adequately secure, especially when dealing with predominantly smaller transactions like buying a coffee. Currencies like Ripple are criticized by cryptocurrency enthusiasts as being “centralized” but they fulfill the needs of your typical person.