At least 3 members considering cutting ties with Facebook's Libra project - Report
August 23, 2019, 5:35AM EDT
1 min read
At least three of the 27 companies which are part of Facebook's Libra cryptocurrency project are reportedly evaluating whether to disassociate themselves from the project.
The Financial Times reported the news on Friday, saying that the increased regulatory scrutiny of the project has led to such consideration. Two members told the FT that they were concerned about the regulatory issues, while another member said that they were worried about publicly supporting Libra.
"I think it's going to be difficult for partners who want to be seen as in compliance [with their own regulators] to be out there supporting [Libra]," one of the founding members of the Libra Association told the news source.
The Libra Association is comprised of big-name companies such as Visa, Mastercard, PayPal, Uber and Spotify. However, Visa CEO and chairman, Alfred F. Kelly, recently said that no company has officially joined the project yet.
Facebookannounced the Libra project in mid-June and since then has faced intense regulatory scrutiny from around the world. Facebook's blockchain lead, David Marcus, recently assured senators and lawmakers in the U.S. that Libra won't launch until all concerns are addressed.
Meanwhile, a group of six U.S. lawmakers, led by Democratic Congresswoman Maxine Waters, is planning to visit Switzerland, the association's headquarters, in “the coming days” to discuss the Libra project.