{"id":238813,"date":"2019-10-02T10:44:37","date_gmt":"2019-10-02T14:44:37","guid":{"rendered":"http:\/\/insidebitcoins.com\/?p=238813"},"modified":"2019-10-02T10:46:27","modified_gmt":"2019-10-02T14:46:27","slug":"cracks-are-showing-up-in-the-libra-association","status":"publish","type":"post","link":"https:\/\/insidebitcoins.com\/news\/cracks-are-showing-up-in-the-libra-association","title":{"rendered":"Cracks Are Showing Up in the Libra Association"},"content":{"rendered":"

Facebook and its Libra stablecoin have consistently found themselves in hot water since it released its whitepaper for the digital asset back in June. Whether it is\u00a0<\/span>doubt<\/span><\/a>\u00a0from cryptocurrency insiders about what the asset represents or negative sentiments\u00a0<\/span>from\u00a0<\/span><\/a>lawmakers over the social media giant and its chequered past with privacy indiscretions, the barrage of\u00a0<\/span>criticism\u00a0<\/span><\/a>has been relentless.\u00a0<\/span><\/p>\n

Now, recent reports seem to opine that some of the companies which initially signed up to be a part of the Libra Association (Libra’s Swiss-based governing body) have begun to develop cold feet.<\/span><\/p>\n

Facebook is becoming radioactive<\/span><\/h2>\n

Earlier this week, several news outlets published reports with claims that the Libra Association might be in turmoil, as several key members are contemplating an exit from the group based on fears that their association with the crypto project could be bad for their reputation.\u00a0<\/span><\/p>\n

On October 2, finance news source Bloomberg\u00a0<\/span>reported<\/span><\/a>\u00a0that financial giants VISA, PayPal, MasterCard, and Stripe are reportedly looking into walking away, thus relinquishing roles within the Association that they initially paid $10 million to get.<\/span><\/p>\n

Citing people familiar with the matter, Bloomberg notes, \u201cExecutives at the payments companies believe Facebook oversold the extent to which regulators were comfortable with the project and are concerned about the perception that the social network hasn\u2019t behaved responsibly in other areas.\u201d<\/span><\/p>\n

The Wall Street Journal also picked on this, adding in\u00a0<\/span>its report<\/span><\/a>\u00a0that MasterCard and VISA are wary of the amount of backlash that Facebook and Libra have gotten from regulators around the world. Per the report, both companies are reportedly concerned about the blowback that they could also get as a result of their work with Facebook on Libra; a situation that they would- understandably, of course- very much love to avoid.\u00a0<\/span><\/p>\n

The pressure continues to mount<\/span><\/h2>\n

This isn\u2019t the first time that Libra backers are seemingly threatening to quit. Back in August, the Financial Times\u00a0<\/span>reported<\/span><\/a>\u00a0that two of the Association’s founding members had held discussions on what the appropriate next steps would be for them, as the prospect of fierce regulatory pushback had begun to scare them.\u00a0<\/span><\/p>\n