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Libra’s Supporters Fear the Project Could Damage Their Reputation Among Regulators

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Libra’s backers begin giving in to regulatory pressure

Visa, Mastercard, Stripe, PayPal are allegedly unsure whether they will continue backing the Libra project. A report unveiled this news on October 2, noting that the firms are skeptic about signing on to the project officially. Per the report, people familiar with the matter revealed that the four payment firms are uneasy about Libra’s upcoming plans.

According to the publication, the firms had initially agreed to become part of the Libra Association. This would have seen them become nodes for the Libra stablecoin when the project goes live. However, Libra has since attracted a lot of backlash from watchdogs across the globe. As a result, the four firms now have concerns over damaging their positive relationships with regulators.

Per sources familiar with the matter,

Executives at the payments companies believe Facebook oversold the extent to which regulators were comfortable with the project and are concerned about the perception the social network hasn’t behaved responsibly in other areas — such as how it has handled user data and privacy.

First Wave of Libra’s Backers to be Unveiled in a Few Weeks

The Libra Association has reportedly asked its 28 founding members to reaffirm their positions by the end of this month. Per the sources, the firms had signed nonbinding letters of intent before the unveiling the Libra project.

David Marcus, the head of Calibra took to Twitter to unveil the project’s upcoming plans.

He said,

Felt like addressing this. Official 1st wave of Libra Association members will be formalized in the weeks to come; Change of this magnitude is hard and requires courage + it will be a long journey. For Libra to succeed it needs committed members, and while I have no knowledge of specific organizations plans to not step up, commitment to the mission is more important than anything else;

He concluded by saying that,

The tone of some of this reporting suggests angst, etc… I can tell you that we’re very calmly, and confidently working through the legitimate concerns that Libra has raised by bringing conversations about the value of digital currencies to the forefront.

Stripe Refutes Backing Out Claims

According to a report, these claims have surfaced right before Facebook’s upcoming signing ceremony in Switzerland. Per sources, this event can come as soon as October 14.  It would see the would-be members of the platform sign binding agreements.

Explaining that Stripe has no intentions of backing out of the Libra project, a spokesman of the firm said,

Nothing has changed with our involvement with Libra since we came on to participate,

He added,

We agreed to work on the charter with these other participants. We continue to work on the charter. We’re still actively involved.

This news comes after a report unveiled that three members of the Libra Association had considered withdrawing their support in August. Per the report, the backers cited increasing regulatory pressure. 

Do you think Facebook will be able to roll out Libra in the coming year? Let us know in the comments below.

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