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.
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