Libra: Mastercard and Visa also plan to withdraw from the project

Libra: Mastercard and Visa also plan to withdraw from the project - Visa Mastercar

According to the revelations of the Wall Street Journal, after some companies of the 27 initial partners collected for the Libra project, Visa and Mastercard are also considering leaving the association. 

Tomorrow, it will be held in Washington, by the managers of the companies that have joined the Libra Association, they will meet for a discussion on the future of Facebook stablecoin. 

By 14 October, however, a meeting has been scheduled in Switzerland, in Geneva, in order to discuss and draft a regulatory document for the association and for the appointment of the members of the Board of directors. 

Even if several meetings are scheduled, the Wall Street Journal, he says there are some companies involved that have many doubts about Libra's future, and above all they are "afraid" of the problems that could cause him any opposition from governments and regulators, who are considering opposing this project. 

This concern also stems from the dispatch by the Treasury Department of letters sent to US companies that are involved in the project including Mastercard, Visa, Paypal and Stripe.

The department asked them for a comprehensive overview of the compliance of their programs with regards to anti-money laundering rules, and how Libra will also be able to adapt to this

One of the first concrete consequences is that some members of the association have rejected some of the requests made by Facebook, such as publicly supporting the Libra project, but they are circulating of the rumors of possible defections. 

The fact, however, is that if they fail to the Mastercard and Visa project, that is the two main financial partners of the project with Paypal, the entire Libra launch plan could be at risk. 

According to the Wall Street Journal, if there is not a network of financial partners that can assist in the transfer and exchange of currencies in Libra, and promote this stablecoin as a form of payment, the scope of this could become limited. 

These concerns are certainly due to all the criticisms that central bankers and government officials who are opposing the release of cryptocurrency have received. 

Another problem is also the speech given by CEO Mark Zuckerberg which has generated various repercussions. In fact, during one of his speeches he heavily judged Elizabeth Warren, one of the main candidates for the upcoming democratic presidential elections in the United States. 

This debate with a possible democratic candidate in the United States has greatly worried the American companies involved, who do not want to play a role in political disputes, this risk could therefore lead them to take a step back from the Libra project.