Three members of Libra could leave the project
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Three members of Libra could leave the project

By Marco Cavicchioli - 23 Aug 2019

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Three of the 28 founding companies of Libra would be on the verge of abandoning the project.

This is reported by the Financial Times, but it does not say which are the three companies or where this information came from.

The reason for this possible defection would be the growing pressure from regulators towards the project launched by Facebook.

The three companies would have expressed concerns about being involved in the project precisely because of the reaction of some institutions, in particular with regard to the potential threat to financial stability that Libra would bring.

A representative of one of these companies said:

“[To be publicly supporting Libra,] it’s going to be difficult for partners who want to be seen as in [regulatory] compliance”.

Two of these companies would be seriously considering abandoning the project.

Meanwhile, the official statutes of the Libra Association have been filed in Geneva. They were registered with the Geneva Trade Register on July 31st and published on August 6th.
This means that the project, unlike what has been said so far, is entering its operational phase, so for those who want to withdraw from it, now would be the right time to do so.

In addition to Facebook, the Libra Association has 27 other founding members, including Visa, MasterCard, PayPal, eBay and Coinbase and it is not easy to figure out which of them might be willing to abandon the project.

These 28 founding members are expected to pay $10 million each, but apparently, the contributions have not yet been paid.

According to Visa’s CEO, the 28 companies have so far only signed a non-binding letter of intent to join the Association, so they are still in time to abandon the project.

On the other hand, within Facebook, someone reports that the company is not appreciating the fact that it is the only target of criticism related to Libra since, despite being the promoter of the initiative, it is only one of the 28 equivalent members of the Association.

Marco Cavicchioli
Marco Cavicchioli

Class 1975, Marco teaches web-technologies and is an online writer specializing in cryptocurrencies. He founded ilBitcoin.news, and his YouTube channel has more than 11 thousand subscribers.

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