Tensions surface between Facebook and Libra backers over regulatory pushback

Tensions surface between Facebook and Libra backers over regulatory pushback

The regulatory pushback on Facebook's digital currency project Libra appears to be putting the frighteners on some of its commercial partners, with several companies currently considering their positions, according to the FT.

The news comes after reports emerged that competition watchdogs at the European Commission have begun probing potential anti-trust issues relating to Facebook's plans, with a particular focus on the governance structure and membership of the loosely affiliated Libra Association.

The probe is the latest in a series of hurdles facing Facebook as it strives to reassure regulatory bodies and politicians the world over about privacy, security and competition worries regarding its new currency unit.

The pressure has led to at least three of the firms to weigh up their future involvement with the project, with two companies actively considering pulling out, the FT reports.

So far, Facebook has signed up 28 firms, each pledging $10 million for their part in the scheme. These include payments providers Visa, Mastercard, Paypal, PayU and Stripe; e-commerce companies eBay, Booking Holdings, Farfetch, Lyft, Mercado Pago, Spotify and Uber; telecoms companies Iliad and Vodafone; blockchain services Anchorage, Bison Trails, Coinbase and Xapo Holdings and a number of venture capital firms and NGOs.

The growing tension between Facebook and its partners is working in both directions, with the social media giant reputedly dismayed at the lack of vocal support it is receiving from partner associations amidst the regulatory onslaught.

Comments: (1)

Carlos Santaella
Carlos Santaella - FIDE PBC Europe - Madrid 26 August, 2019, 12:19Be the first to give this comment the thumbs up 0 likes

The answer to LIBRA from non US Central Bankers: SHC -Synthetic Hegemonic Currency-

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