Facebook’s Libra Backers Get Cold Feet, Fear It Could Taint Their Image Among Regulators

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Facebook’s Libra Backers Get Cold Feet, Fear It Could Taint Their Image Among Regulators

Authored by William Suberg via CoinTelegraph.com,

Visa, Mastercard, PayPal and Stripe are unsure whether they wish to become paid-up participants in Facebook’s Libra digital currency.

Facebook's Libra Backers Get Cold Feet, Fear It Could Taint Their Image Among Regulators

image courtesy of CoinTelegraph

As Bloomberg reported on Oct. 2 citing “people familiar with the matter,” the four payment giants have reservations about the plans. 

Sources: Facebook “oversold” regulator support

The companies formed part of the cohort which originally said they wished to act as nodes for Libra, subject to a fee of $10 million. 

Libra has since sparked a major backlash from regulators worldwide and the four now share concerns their own reputation could suffer. Bloomberg summarized their comments:

“Executives at the payments companies believe Facebook oversold the extent to which regulators were comfortable with the project and are concerned about the perception that the social network hasn’t behaved responsibly in other areas.” 

Stripe dispels rumors of U-turn

The latest issue comes prior to Facebook conducting a signing ceremony in Switzerland, the future headquarters of Libra’s guardian — the Libra Association. 

The event, which the same sources said could occur as soon as Oct. 14, would cement would-be members’ obligations. 

Speaking to Bloomberg, a Stripe spokesperson appeared to deny any teething problems between the company and Facebook, adding:

“Nothing has changed with our involvement with Libra since we came on to participate.”

As Cointelegraph reported, Swiss regulators themselves recently vented their own worries about Facebook, but these pertain to privacy and less to Libra’s activities or remit. 

In August, meanwhile, Cointelegraph reported that other members considered quitting due to government pressure.


Tyler Durden

Wed, 10/02/2019 – 12:15

Facebook's Libra Backers Get Cold Feet, Fear It Could Taint Their Image Among Regulators

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