Visa, Mastercard Inc and other key financial partners may reconsider their participation in Facebook’s cryptocurrency Diem (formerly Libra), the Wall Street Journal reported this week.
According to the Journal report, Diem’s financial backers did not want to attract regulatory scrutiny and rejected Facebook’s requests to publicly support the project.
Policy executives from the Diem Association, two dozen supporters of the cryptocurrency, were called to a meeting in Washington DC on Thursday, the WSJ reported. Separately, Bloomberg reported that PayPal Holdings Inc and Stripe Inc are also undecided about formally signing Libra.
Reuters reported last week that Facebook may pull back the launch of Libra to address regulatory concerns around the world.
Facebook announced plans to launch its digital currency in June 2020 in partnership with other members of the Diem Association, which was founded by the US tech giant to lead the project.
However, the attempt to bring cryptocurrencies into the mainstream has been met with regulatory and political skepticism globally, with France and Germany promising to block the project, formerly Libra, from operating in Europe.
The companies did not immediately respond to Reuters’ requests for comment. David Marcus of Facebook, who oversees the company’s Diem plans, said in a tweet in response to the Journal report that he was not aware of any particular company’s “stepping down” plans:
I can say that we are working very calmly and confidently on the legitimate concerns that Libra raises by highlighting the conversations about the value of digital currencies.