Some major partners of the Facebook Libra project are developing cold feet according to a recent Bloomberg report. According to the report, four payment partners have begun to wonder if they should sign on to the project officially at the risk of staining their standing with regulators. The four companies are Stripe, PayPal Holdings, Mastercard, and Visa.

Facebook Libra Oversold Acceptance by Regulators

According to the report, executives at these four firms believe that Facebook exaggerated how accepting regulators were of the project. Besides that, the perception that Facebook has not been responsible in handling user data does not sit well with them.

This report comes shortly after the Libra Association requested the 28 founding members to formalize their commitment to the project. Members of the association all signed non-binding letters when they agreed to be part of the project. The revelation was made by David Marcus, who is a Facebook executive overseeing the project, via a tweet.

Any company that officially affirms their commitment to the project will not immediately have to make the $10 million investment required to kick start the project. This decision to delay payments is in line with the association’s strategy not to rush anything. Consequently, this will give the members time to decide if this project might negatively affect their operations. The charter signing is expected to take place on October 14 and will most likely happen in Switzerland, where the association has its headquarters.

No One Has Confirmed these Rumors

When Stripe was contacted, their spokesman said they were still committed to the project and nothing had changed. However, he did not say whether Stripe had hesitation about signing the charter. The spokespeople for Visa, PayPal, Mastercard, and the Libra Association did not comment on the issue.

The upcoming charter signing is a sign that Facebook and the Libra Association members are moving forward with the project. This is despite recent media reports that the project might be put on hold indefinitely.

In the past, Facebook has said it would not have total control over the project. It has made it clear that the Libra Association would control all decisions about the future of the Libra coin. In Europe, it has not been smooth sailing for the project, some finance ministers in the continent have threatened they could ban the coin from their nations. The antitrust chief for the EU said she was investigating the coin since there was fear that it could develop a new and separate system of finance.

Development Of Facebook Crypto Progressing Well

Persons familiar with the project say that the development of the technology that will power Libra is progressing well. Besides that, tweaks are being made to address regulatory concerns. Some of the concerns being addressed include AML policies and KYC requirements. For instance, reports indicate that Calibra network nodes are currently sending coins to each other, although not in real money, to one another. Those who oppose the project claim it could be used to undermine the monetary policies of entire nations as well as for illegal purposes such as money laundering.

Image Source: Flickr 

Notice: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. The information has been obtained from sources we believe to be reliable; however no guarantee is made or implied with respect to its accuracy, timeliness, or completeness. Authors may own the crypto currency they discuss. The information and content are subject to change without notice. Visionary Financial and its affiliates do not provide investment, tax, legal or accounting advice. This material has been prepared for informational purposes only and is the opinion of the author, and is not intended to provide, and should not be relied on for, investment, tax, legal, accounting advice. You should consult your own investment, tax, legal and accounting advisors before engaging in any transaction. All content published by Visionary Financial is not an endorsement whatsoever. Visionary Financial was not compensated to submit this article Please also visit our Privacy policy; disclaimer; and terms and conditions page for further information.

You May Also Like

Association of More Than 200 German Banks Advocating For Digital Euro

In a newly published paper, an association of more than 200 German banks…

VanEck and SolidX Steps to Offer Bitcoin ETF Similar Products to Institutions

Photo Credit To Bilmis Ler Via Flickr  A recent report from the Wall Street…

France Warns to Halt Development of Facebook’s Libra in Europe

Ever since Facebook announced Libra, it has been beset by skepticism from…

Indian Tech Giant TCS Launches Blockchain Development Kit for Enterprise

Tata Consultancy Service (TCS), India’s largest IT services company announced the launch…

Kinesis Partners With CoolBitX to Provide an Innovative Cold Storage Solutions

Kinesis recently announced that it would collaborate with CoolBitX Technology, which developed…

AT&T SIM Swap Scandal And How Cryptocurrency is Involved

Photo Credit To Mike Mozart Via Flickr Michael Terpin, a US-based entrepreneur…

Bitcoin, Ethereum, XRP Price Analysis, Why ETH Could Rally First

During the last 24 hours, the top 3 cryptocurrencies by market capitalization…

What is IOTA – Creating an Economy Powered by a Permissioned Distributed Ledger

IOTA is a cryptocurrency based on Tangle. Its main aim is to…

Facebook Discloses Currency Basket that Backs Libra Cryptocurrency

The social media giant has finally revealed the number of fiat currency…

SEC Charges a San Diego Man with Fraudulently Obtaining $3.5 Million via a Crypto Mining Scam

The SEC recently revealed that it had charged a San Diego man…