Libra is having a hard time focusing on their launch as more and more problems come their way. The regulators and government institutions were already giving them a hard time by requesting for more details on the project and asking other questions.
Things took a different turn when the backing partners of the project started to have cold feet. Last week, PayPal decided to step back from the project, whereas Visa and Mastercard informed that they will not support the platform publicly anymore. Some senators have suggested the backing firms– Visa Inc., Mastercard Inc., and Stripe Inc., to reconsider their involvement in Facebook’s proposed Libra digital currency.
Senator Sherrod Brown of Ohio and Senator Brian Schatz of Hawaii wrote a letter to these firms and informed them about the risks that are involved in this partnership with Libra. They also added how some of the members of the company have struggled to get adequate information from Facebook about the project.
With such shady behavior, the regulators are afraid that Libra might pose to facilitate criminals and terrorist financing, interfere with monetary policy, or exposing consumers to certain risks. The senators have asked the companies to understand these risks and discuss how they would deal with this system. Currently, Libra has 27 members supporting the project as they try their best to convince the lawmakers.
