Financial services companies MasterCard and Visa take a step back and rethink the possibility of supporting Libra.
During the announcement of the launch of Libra, many sectors of the community in hype with what would represent the new financial revolution with a stablecoin that would exist in the largest social networks in the world (Facebook, WhatsApp and Instagram). Many companies added support to the project, such as Visa and MasterCard, who publicly gave their support to Facebook.
Eventually, the perception towards Libra has changed, while more heads of states, regulators and global meetings of leaders such as the G20 in Japan, began to discuss what the impact of Libra could be, something in which everyone agreed is that Facebook did not have a perfectly clean background to carry out this project, referring to the case of Cambridge Analytica, and the sale without prior authorization of the customer of millions and millions of data.
Facebook knew this risk even before we knew the existence of the rumors, so Libra was presenting in parallel with a supposedly decentralized institution called Libra Association, and they were the ones who were going to manage the money of all the clients of this supposed cryptocurrency.
But like the crypto, it did not take long for the members of this supposedly centralized institution to also drop all the very bad attention Libra was raising.
Many of the investors, and participants of the Libra Association did not want to continue attracting more negative attention from global regulators, the cost is very large to bet on a project that is very likely to never be what Facebook was raised in the first place, so little by little and one by one they began to abandon the ship of Libra.
MasterCard, Visa and another handful financial partners that were enlisting to oversee the cryptocurrency backed by Facebook, are having doubts as regulators increasingly unleash their anger on the crypto project, according to a report published Tuesday.
And to add more fuel to the fire, all Libra executives were summoned to a meeting in Washington DC face to face with the congress, again to discuss all the problems of this possible crypto.
The head of the Libra Association said last week that project managers aimed to “reassure” regulators worried about crypto money.
On the other hand, Visa issued comments to the international media that their connection with Libra and Libra Association were not binding, and that they were not members of anything.
Facebook’s David Marcus, who oversees Libra meetings with multiple regulators, said on Twitter:
“I can tell you that we are working very calmly and confidently on the preocuplegitimasesegitimas that pound has generated, by bringing to the fore the conversations about the value of cryptocurrencies.”