Backers Consider Quitting Facebook's Libra project
Published On : 2019-08-23 13:32:58
Several backers of Facebook’s Libra cryptocurrency project are said to be considering backing out due to growing pressure from regulators.
According to a report from the Financial Times, three of the firms, which were not named, expressed concerns over being seen to be linked to the project after watchdogs around the world raised concerns over its potential threat to financial stability.
Regulators and lawmakers expressed concerns about Libra coin. To be more precise, their main concerns are related to data protection. To remind you, Facebook is notorious for giving away users’ data to third parties.
The regulators from different countries stated that Facebook failed to explain how exactly users’ data will be used, and how the company plans to protect them.
Concerns also came from the US Treasury Secretary Steven Mnuchin. He stated that Facebook’s cryptocurrency could be used for illegal actions such as money laundering and for terrorist activities. Clearly, regulators aren’t fond of Libra coin.
As a result, two of the firms are considering pulling out of the Libra project, the FT said.
It seems that launching Libra coin will be a long journey.