Key financial partners wary of Facebook's digital currency

Key financial partners wary of Facebook's digital currency

There are more than two dozen early members of the Libra Association, including Uber, PayPal, Spotify, Visa, and Mastercard.

Visa and Mastercard, along with PayPal and Stripe, are reportedly reconsidering their support for Facebook's Libra project.

Executives at the payment companies believe Facebook oversold the extent to which regulators were comfortable with the project and are anxious about the perception the social network hasn't behaved responsibly in other areas - such as how it has handled user data and privacy, the people said. Despite signing a non-binding contract to form the Libra Association, the payment giants feel less so optimistic on the project was given the continued regulation backstops Libra is facing the world over.

The newspaper cited people familiar with the matter who were granted anonymity. Before libra was unveiled, the companies signed nonbinding letters of intent to explore joining the association.

Facebook's David Marcus, overseeing the company's Libra plans, said in a tweet in response to the Journal report that he wasn't aware of any specific companies' plans to "not step up".

A Libra Association created by Facebook to independently manage the digital money still had its initial group of backers on Tuesday.

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Likewise many other digital currencies, Libra is in no of the stagnation phase, thought what raises concerns in those companies, is the reputation they have and definitely would not like to lose or have any black marks on it.

Despite the technical progress, the Libra project remains in a fog of uncertainty as Libra organization members balk at commitment amidst the monumental, unprecedented regulatory pushback.

"All Is Not Lost"Change of this magnitude is hard and requires courage + it will be a long journey".

Reuters suggests that the company may have to push the launch of Libra because of regulatory hurdles.

Facebook is still hoping to move forward with official signing of the Libra Association's charter as soon as October 14 in Switzerland, where the non-profit Association charged with managing the Libra payments network and monetary policy would be headquartered, per Bloomberg.

Libra has since the announcement in June this year, Libra has faced a backlash from regulators both in Europe and the United States. There are also objections that have to do with privacy and possibly use for money laundering or financing of terrorism.

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