Visa, MasterCard, PayPal and Stripe, that have joined Facebook Inc. as founding members of the Libra Association, are wavering over whether to officially support the crypto project, insiders reported.
Four payments companies are hesitating to officially support Facebook in order to maintain good relations with global regulators. Financial regulators have the reputation of been critical of the Facebook crypto, which may pose a threat to global financial stability in their view. The heads of the companies are concerned about how Facebook manages the private date of its users.
Lack of support from key payment systems can have serious consequences for Facebook, it would be difficult to persuade users to replace their national currencies with Libra.
As previously reported, back in August, data protection chiefs published a joint statement in which raised the concerns over the privacy risks posed by Facebook’s Libra.
The U.K. Information Commissioner’s Office (ICO), data privacy commissioners from Australia, Canada, Albania, Burkina Faso, the EU, the U.K., the U.S., shared concerns that “while Facebook and [its crypto wallet-focused entity] Calibra have made broad public statements about privacy, they have failed to specifically address the information handling practices that will be in place to secure and protect personal information.”