Libra might lose essential partners

Two major financial partners of Libra, Visa and Mastercard, are unhappy with the regulators’ scrutiny. It seems like they no longer want to be part of the project.

Libra is once again in trouble. According to a report by the Wall Street Journal, Visa and Mastercard are both considering backing out as a result of serious scrutiny from the United States and European government officials. Undisclosed sources revealed that the founding supporters of Libra are expressing reservations about the partnership. PayPal and Stripe are also not sure they are willing to partake.

Facebook initially disclosed plans to launch the coin in June 2020. However, it is possible that it will postpone the whole thing. This is to ensure it adequately tackles all regulatory concerns.

Libra partners expected to officially sign their support

According to the Wall Street Journal, Facebook is asking all its 28 partners to reaffirm their support to the project. Sources familiar with the project disclosed that all the partners have initially signed non-binding letters to join the association.

Facebook Libra Executive, David Marcus tweeted on Wednesday that the “[first] wave of Libra Association members will be formalized in the weeks to come.” He further added that he was currently not aware of any Libra partner who might back out of the project. He, however, stated that creating a new global currency is “hard and requires courage.”

Still speaking on the reaffirmation about to take place, he said: “I can tell you that we’re very calmly, and confidently working through the legitimate concerns that Libra has raised[…]”. The signing of the charter is expected to take place on Oct. 14 in Switzerland.

Spokesperson for Stripe stated that: “Nothing has changed with our involvement with Libra since we came on to participate,[…] We continue to work on the charter. We’re still actively involved.” Spokesmen for Visa, Mastercard and PayPal declined to comment.

Facebook disclosed plans to launch Libra in June. Companies like EBay Inc., Uber Technologies Inc., Coinbase Inc. etc support the project.

Do you think the regulators should approve of the stablecoin? Send in your thoughts, I would love to hear from you.

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