At least 3 members considering cutting ties with Facebook's Libra project - Report

At least three of the 27 companies which are part of Facebook's Libra cryptocurrency project are reportedly evaluating whether to disassociate themselves from the project.

The Financial Times reported the news on Friday, saying that the increased regulatory scrutiny of the project has led to such consideration. Two members told the FT that they were concerned about the regulatory issues, while another member said that they were worried about publicly supporting Libra.

"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 members of the Libra Association told the news source.

The Libra Association is comprised of big-name companies such as Visa, Mastercard, PayPal, Uber and Spotify. However, Visa CEO and chairman, Alfred F. Kelly, recently said that no company has officially joined the project yet.

Facebook announced the Libra project in mid-June and since then has faced intense regulatory scrutiny from around the world. Facebook's blockchain lead, David Marcus, recently assured senators and lawmakers in the U.S. that Libra won't launch until all concerns are addressed.

Meanwhile, a group of six U.S. lawmakers, led by Democratic Congresswoman Maxine Waters, is planning to visit Switzerland, the association's headquarters, in “the coming days” to discuss the Libra project. 

About Author

Yogita Khatri is a senior reporter at The Block and the author of The Funding newsletter. As our longest-serving editorial member, Yogita has been instrumental in breaking numerous stories, exclusives and scoops. With over 3,000 articles to her name, Yogita is The Block's most-published and most-read author of all time. Before joining The Block, Yogita wrote for CoinDesk and The Economic Times. You can reach her at [email protected] or follow her latest updates on X at @Yogita_Khatri5.

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