Payment companies that are part of the Libra Association are suddenly not sure about Facebook’s first crypto initiative. According to the Wall Street Journal, Visa, Mastercard and a few other companies are reconsidering their involvement in the project after backlash from US and European regulators. While the social media giant has called for a unified front on the project, the payment companies do not want to be seen as boosting the project publicly.
The members of the Libra association will meet in Wahsington DC on October 3, 2019 but there is no clarity on the agenda of the meeting. Interestingly, members of the Libra Association are also scheduled to meet in mid-October to discuss Libra’s charter. This will essentially be a reaffirmation of their commitment to the project.
David Marcus, the Facebook executive heading the Libra project, took to Twitter to defend Libra:
2) 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;
— David Marcus (@davidmarcus) October 1, 2019
Another Bloomberg report mentions that PayPal and Stripe are also part of the group that is concerned about maintaining positive relationships with regulators who have been critical of Facebook Libra. Executives from these payments companies believe that Facebook oversold the extent that the regulators were comfortable with the cryptocurrency project.
Libra, which recently revealed the percentage breakdown of the basket of traditional currencies it is backed by, has been trying its best to engage with regulators globally. The company recently hired the former aide to US Senator Mike Crapo, Susan Zook, to do Libra’s bidding. In addition, Facebook CEO Mark Zuckerberg has already told senators that Libra will not launch anywhere without the US regulators’ blessings.