While some firms are anticipating to be part of Facebook’s Libra project, some are planning to back-off.
According to a report by Financial Times on Aug. 23, about three early backers of Libra's project are considering withdrawing their support in view of the strict regulatory setback.
The report alleges that two founding partners of Facebook’s Libra Association have held discussions about what their “right next steps” should be.
Another unnamed backer is purportedly concerned that their public support for Libra will draw unwanted regulatory scrutiny of their own, independent businesses.
The Libra Association is the newly-established, independent governance consortium for Libra. It counts 28 founding members — including Visa, Mastercard, PayPal and Uber and Spotify — each of which was required to invest $10 million to join.
In an interview with the Financial Times, one partner noted that:
“I think it's going to be difficult for partners who want to be seen as in compliance [with their own regulators] to be out there supporting [Libra].”
Another backer criticized the social media giant for its ill-conceived strategy, saying that:
“Some of those conversations [about regulation] should have taken place before the launch, to understand how regulators would think about this, so there wasn’t so much pushback.”
The tension reportedly goes both ways. One partner admitted that Facebook is itself becoming “tired of being the only people putting their neck out.”
Both Facebook and the Libra Association have reportedly declined to comment.