Facebook’s Libra Backers Fear It Could Taint Their Image Among Regulators

Visa, Mastercard, PayPal and Stripe are reportedly unsure whether they wish to become paid-up participants in Facebook’s Libra digital currency.

According to a Bloomberg article on Oct. 2 — citing “people familiar with the matter” — the four payment giants have reservations about the social network’s project. 

Sources: Facebook “oversold” regulator support

The companies formed part of the cohort which originally said they wished to act as nodes for Libra, subject to a fee of $10 million. 

Libra has since faced a major backlash from regulators worldwide and the four now share concerns their own reputations could suffer.

According to Bloomberg, the payment giants believe Facebook exaggerated claims that regulators were comfortable with Libra — and they fear past scandals involving the Silicon Valley giant could taint their image. 

Stripe dispels rumors of U-turn

The latest issue comes prior to Facebook conducting a signing ceremony in Switzerland, the future headquarters of Libra’s guardian — the Libra Association. 

The event, which the same sources said could occur as soon as Oct. 14, would cement would-be members’ obligations. 

Speaking to Bloomberg, a Stripe spokesperson appeared to deny any teething problems between the company and Facebook, adding:

“Nothing has changed with our involvement with Libra since we came on to participate.”

As Cointelegraph reported, Swiss regulators themselves recently vented their own worries about Facebook, but these pertain to privacy and less to Libra’s activities or remit. 

In August, Cointelegraph reported that other members considered quitting due to government pressure.