At least three companies that initially supported the Libra project from Facebook are considering abandoning further work in the light of tough regulatory pressure.
According to the Financial Times, two founding partners of the Libra Association have negotiated what steps to take in the future.
Another (again unnamed) company is allegedly worried that its open support for the Libra project will attract unwanted attention from the regulator and increased control over an existing business.
As previously reported, the Libra Association is the newly created independent Libra Project Management Consortium. It has 28 founding members, among which there are well-known companies (Visa, Mastercard, PayPal and Uber and Spotify). As a requirement for membership, each of them should invest $ 10 million in the project.
In an interview with the Financial Times, one of the partners noted:
“I find it difficult for some partners to find a common language with local regulators if they want to support the Libra project.”
Another partner criticized Facebook for its ill-conceived strategy: “Some of these regulatory conversations had to be held before launch, in order to understand the attitude of regulators to this project.”
It is reported that a tense situation is observed among all project participants. One partner admitted that Facebook itself was "tired of taking all the blows only on itself."
Facebook and the Libra Association reportedly declined to comment.