Libra fast losing traction

A report in the Financial Times says 3 unnamed backers of the Libra Association are having second thoughts about the project. Regulators around the world have been vocal in their critiques of Libra, raising concerns over the power Facebook would have over a new global currency and the threat to global financial stability.

The European Commission is looking at investigating the Libra Association over antitrust issues. In the US, a range of regulators and lawmakers have critiqued the project. Last month Rep. Maxine Waters called for work on Libra to be halted until all relevant regulatory issues have been addressed. Last week, Waters, the chairwoman of the U.S. House Financial Services Committee, said that the committee will continue to scrutinize Libra.

The Libra Association is in talks with a large number of member firms who would pay up to $10 million to be part of the project. These include blue chip firms such as Visa, Mastercard, Paypal and Uber.

“It’s going to be difficult for partners who want to be seen as in compliance” to back the Libra project publically, a source at one company told the FT. Meanwhile, Facebook is said to be frustrated that the companies are not supporting the project publically.

If Facebook is to launch the Libra in 2020 as planned, a lot of delicate work needs to be done. The odds of Libra launching in time are falling rapidly.