Facebook financial partners reconsider their support for the Libra cryptocurrency
Visa, Mastercard Inc and other key financial partners could reconsider their support for Facebook’s cryptocurrency, Libra, the Wall Sreet Journal reported on Tuesday, October 1, citing people familiar with the matter.
The aforementioned companies, which had expressed their willingness to be part of the Libra Association, the organization responsible for managing Libra reserves, did not want to attract regulatory scrutiny from the US government, and declined Facebook’s request to publicly support the Libra project, according to the WSJ article.
Facebook executives in charge of the start-up of the Libra Association, for which some 28 organizations had confirmed participation, have been called to a meeting in Washington, D.C., on Thursday, September 3, according to the WSJ.
Separately, Bloomberg reported that PayPal Holdings and Stripe Inc are also undecided about their formal incorporation into the Libra project.
Reuters reported last week that Facebook could postpone the launch of Libra to meet regulatory requirements that have emerged worldwide.
Facebook announced its plans to launch its own cryptocurrency in 2020, in partnership with other members of the Libra Association, launched by the world’s leading social network to manage Libra reserves.
However, the attempt to take cryptocurrencies on a massive scale – Facebook and its WhatsApp messaging service have more than 2 billion users – has faced the skepticism of regulators and politicians, which includes a request from France and Other European countries block the operations of Libra in Europe.
David Marcus, co-creator of Libra and CEO of Calibra, responded on Tuesday night to the WSJ article, through his Twitter account. Marcus said the first group of Libra Association members will be formalized in the coming weeks.
Also, Marcus criticized the WSJ article for suggesting that Facebook was not up to the security and privacy challenges posed by Libra.
Last August, a group of Facebook partners in the Libra project had expressed their reservations against it, for the negative attention of the media and governments.
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