Libra is on further crisis. Some of its original founding members showed signs of withdrawal from the association.
PayPal, for example, did not have any of its representatives showing up in Libra Association meeting in Thursday. The Financial Times reported that the payment firm is considering leaving the project due to the regulatory backlash.
Following PayPal’s reported withdrawal, other original members of Libra Association council are reportedly reconsidering their involvement in the project.
The Wall Street Journal reported on Thursday that Visa and Mastercard are hesitating. The two major members of Libra Association are reluctant to participate further with the project.
Not only Libra Association members, governments are also hesitating
Further, some of the biggest American banks accused Libra of threatening the monetary policies in U.S.. Bloomberg reported that some representatives of those banks stated that it might create a “shadow banking” system.
As the pressure closes in, U.S. house committee is taking further action towards Libra.The house has previously called David Marcus, Libra co-creator and head of Calibra to testify. Then it called Sheryle Sandberg, the chief operating officer of Facebook. Now the committee is trying to get Mark Zuckenberg himself to testify.
Facebook cryptocurrency project, Libra, has been receiving backlash its regulations since last week. Governments from around the world stated restriction upon the crypto project.
Facebook first announced Libra in June. Playing in the dangerous field of finance, the company prepared a governing council to oversee the project. There are 100 members in the council including Facebook, Calibra, PayPal, Visa, Mastercard, Uber etc.
However, there is still no exact launch date of the project by the officials.
Toward the report of hesitation by Wall Street Journal, David Marcus stated on his Twitter:
“For Libra to succeed it needs committed members, and while I have no knowledge of specific organizations plans to not step up, commitment to the mission is more important than anything else.”
“The tone of some of this reporting suggests angst, etc… I can tell you that we’re very calmly, and confidently working through the legitimate concerns that Libra has raised by bringing conversations about the value of digital currencies to the forefront.”