Some early supporters of Facebook’s proposed cryptocurrency Libra, spooked by the intense regulatory scrutiny both national and worldwide, want to distance themselves from the project, according to a report by The Financial Times.
The Libra Association, a coalition of 28 members put together by Facebook to help bring the cryptocurrency to fruition, includes Visa, Mastercard, Uber, the subsidiary Calibra and Spotify, among others.
The members all made a non-binding promise to invest at least US$10 million. Three anonymous members spoke with the FT and said they wanted to back out of the venture.
Libra was announced in June, and it immediately saw a strong backlash from all facets of the financial community, including regulators, politicians, and antitrust officials.
Two early backers said that they wanted to figure out how to end their relationship with Facebook over the scrutiny. Another early backer told the FT that they didn’t want to support Libra publicly because they were worried about the regulatory attention it could bring to their own business.
“I think it’s going to be difficult for partners who want to be seen as in compliance [with their own regulators] to be out there supporting [Libra]” one of the founding partners told the news organization.
Facebook has reportedly become concerned about the lack of support from anyone but its own organization. “Facebook is tired of being the only people putting their neck out,” a b
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