The Libra Association (the organization that should develop Facebook’s cryptocurrency) has 28 members. They include such giants as Visa and Uber. Now at least 3 members are trying to get out of the project because of criticism from regulators.
Libra Association may lose several members
According to Financial Times, at least 3 Libra Association members are considering how to distance themselves from the project. The newspaper does not specify who is going to abandon the project exactly but states it is all because of regulators’ criticism that has hit Libra around the world.
"I think it will be very difficult for partners who want to work in accordance with the rules [of their regulators] to support [Libra]," said one of the founders of the Libra Association to the Financial Times.
According to the newspaper’s sources, Facebook is "annoyed" that members of the Libra Association do not support the cryptocurrency openly.
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- The Libra Association has 28 members. These include Visa, MasterCard, Uber, Spotify, and Calibra, a subsidiary of Facebook. Each of them promised to invest $10 million in the project.
- Facebook announced plans to create Libra cryptocurrency in June 2019. Immediately after that, regulators around the world started criticizing the social network. The US Senate, for instance, even registered a bill that bans private large companies from issuing cryptocurrencies.
- On August 19, Facebook also faced problems in the EU. European Commission launched an antitrust investigation against Libra. Authorities believe that Libra could lead to an "unfair" exit of potential competitors from the market.
Editor: Godfrid Brower