Institutional Libra Backers Are Getting Cold Feet

Major Libra backers are backing out of the Facebook-led cryptocurrency effort, according to a WSJ report.

AccessTimeIconOct 2, 2019 at 1:51 a.m. UTC
Updated Sep 13, 2021 at 11:31 a.m. UTC
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Major Libra backers Visa and Mastercard are second-guessing their participation in the Facebook-led digital payments project, the Wall Street Journal reported Tuesday.

Against a global regulatory blasting of the proposed cryptocurrency, the financial services pair and unnamed other companies are balking at Facebook’s call for a unified front. The Journal says that few want to boost the project publicly – leaving Facebook to defend Libra by itself.

Libra has been a favorite target of world financial regulators since its announcement in June. European Central Bank members said it could destabilize the euro; China’s crypto czar called it potentially “unstoppable;” and U.S. Congressional Representatives have called for an outright freeze on its development.

Now members of the Libra Association will meet on Thursday in Washington, D.C. It was not immediately clear what the meeting will be about; the members are scheduled to discuss Libra's charter in mid-October.

David Marcus, the Facebook blockchain lead who co-created Libra, took to Twitter almost immediately defend the crypto project.

“We're very calmly, and confidently working through the legitimate concerns that Libra has raised by bringing conversations about the value of digital currencies to the forefront," he wrote, adding:

“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.”

Libra image via Shutterstock

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