EU's financial commissioner Valdis Dombrovskis is one of the main figures wanting to assess whether Libra should be regulated by the European Union if new regulation is required, or whether the stablecoin should be allowed to function, according to a recent article published by The Financial Times.
Mastercard and Visa's exit leaves Dutch firm PayU as the sole remaining payment provider announced at the launch of Facebook Libra still on board. Officially, Facebook-via its cryptocurrency subsidiary Calibra-is just one of the association's 21 members, with each member having equal voting rights.
The association recently revealed that 1,500 companies are interested to become a part of the project, of which, only 180 met the requirements and standards of Facebook.More news: Galaxy S10 Fingerprint Sensor Reportedly Thwarted By Cheap Screen Protector
The statements from the companies leaving were relatively optimistic. eBay said it "highly respected the vision" of Libra but wanted to focus on rolling out its managed payments offering.
Again according to The Journal, numerous partners felt that Facebook has failed to sufficiently soothe concerns among regulators. If Zuckerberg can make a convincing case for the efficacy of Libra within the current economy, however, the embattled CEO may be able to extricate Libra from its current mire.
Politicians have said Facebook's struggles with protecting users' privacy would spill over into Libra, despite it being a separate organisation.
Libra's potential impact on the market remains to be seen, but Facebook has extricated itself from tougher situations than the one now faced by Libra.More news: Mass. Reports 10 New Likely Cases Of Vaping Illness To CDC
Furthermore, companies like PayPal, Bookings Holding, and Mercado Pago, reportedly left the Libra project, bringing the number of early backers from 28 to 21. Of course, it's not great news in the short term, but in a way it's liberating.
The group elected five people to serve on the board, including Facebook's David Marcus as well as representatives from PayU, venture firm Andreessen Horowitz, blockchain company Xapo Holdings Limited and non-profit Kiva Microfunds. "You know you're on to something when so much pressure builds up". Most announced their withdrawals from Libra citing concerns over the regulatory backlash faced by the project.
Pierre Rochard, the podcast host, argued that Congressional hearings had withal been a ideal avenue through which observers, particularly those from the conventional financial sector, were able to better understand Bitcoin via realizing the problems existing to a centralized and private offering like Libra.
"There's no two ways about it, it's a huge blow", Charlotte Jee, reporter at MIT Technology Review told BBC Radio 4's Today programme. "We are going to add more members".More news: No IED, no detonation at Helena school