Facebook’s Libra tussle with regulators scares away early backers

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  • Three of the early supporters considering a joint retreat from the Libra project.
  • The battle to win regulatory approval for the Libra project has been largely unsuccessful.

Libra, the groundbreaking cryptocurrency idea pitched by Facebook has been pushed between a rock and a hard place following a regulatory blowback. According to a report by the Financial Times, some of the early backers of the project are considering distancing themselves from project.

The battle to win regulatory approval for the project has been largely unsuccessful. Following the hearing in both the US Senate and Congress committees, there are investigations by EU antitrust officials. The backlash as reported by the Financial Times has spooked at least three main backers who are considering a join retreat from Libra.

It is apparent that Libra might not see the of the day. And if it does, it might not raise as many eyebrows as it did during its announcement. Besides, Facebook themselves once agreed that the Libra might not take off after all.

Facebook proposed a Libra Association with 100 members. Before the launch, 28 members had made non-binging agreements with Facebook. A spot on the Libra Association table would cost each member $10 million. Some of the 28 members included MasterCard, Uber, Sportify, and Visa.

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