Home Society Facebook partners exercise caution about Libra

Facebook partners exercise caution about Libra

Visa, Mastercard and other Facebook financial partners havve doubts about Libra project. The companies would reconsider their involvement because of government criticisms of the libra project, the Washington Post reports based on insiders.

Facebook announced in June that it wanted to come up with a sort of crypto coin to offer Facebook users an alternative service to pay for. Supervisors fear that the currency will have an anti-competitive effect on real currencies, such as the euro, the dollar and the yen. There are also objections that have to do with privacy and possibly use for money laundering or financing of terrorism.

The partners of libra, who are involved in setting up and maintaining the payment network behind the new digital currency, would also be afraid of getting in the eye of regulators. For that reason, they still refuse a request from Facebook to publicly support the project, the newspaper knows.

Facebook revealed libra as a potential way to change the entire financial system. In this way money could be sent without the intervention of banks, also to other countries. In China, internet giant Tencent has already done something more or less similar by adding payments to its popular chat app WeChat. Visa and Mastercard, among others, would have jumped on board at Libra for fear of missing the boat.

Facebook CEO Mark Zuckerberg recently commented extensively on employees about libra, according to recently leaked recordings of his speech. For example, he suggested being able to work it out with supervisors. He also said he would fiercely oppose US presidential candidate Elizabeth Warren’s plans to split up major tech companies should they be elected.

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