Due to Regulatory Pushback, Some Early Libra Backers Consider Withdrawing Support for Project






According to a report in the Financial Times, at least three early Facebook Libra backers are looking at options to distance themselves from the project. The three backers are reportedly concerned about the increasing scrutiny and resistance to the proposed digital currency payment system from regulators and legislators around the globe.

When Facebook revealed its Libra plans in June, lawmakers reacted with skepticism. In the United States, House Democrats issued a call for the project to be paused to give lawmakers and regulators time to properly review the Libra proposal and address their concerns.

Many of those legislators spoke at length about the fact that they simply don’t trust Facebook to manage a currency project like Libra. Many cited the company’s recent controversies involving user data management, privacy, and alleged bias and discrimination.

Meanwhile, the European Union has initiated an antitrust investigation into the Libra Association, as watchdog groups around the world have raised alarms about Libra’s potential risk to the global financial system.

Amid that rising resistance, two of Libra’s early backers are reportedly considering the option of quitting the project. FT reported that the third backer has expressed concerns that its own businesses may get caught up in the heightened regulatory scrutiny if they continue to support Libra.

One of the unidentified Libra backers reportedly complained about Facebook’s failure to clear those regulatory hurdles prior to its public announcement. Another suggested that Facebook officials are also concerned about the regulatory pushback, and apparently frustrated that they’re the only participants “putting their neck out.”

Meanwhile, Facebook officials are on record confirming that the digital currency payment system won’t launch until lawmaker and regulator concerns have been properly addressed.

Author: Ken Chase

Freelance writer whose interests include topics ranging from technology and finance to politics, fitness, and all things canine. Aspiring polymath, semi-professional skeptic, and passionate advocate for the judicious use of the Oxford comma.

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