Libra Is Crumbling As Visa And Mastercard Consider Quitting: Report

The cryptocurrency project by Facebook named Libra is crumbling right now, after reports in the Libra latest news showed that major financial companies backing the project are considering a quit.

Ever since releasing its whitepaper, Libra has been in hot waters and central banks and governments across the globe seem united against the stablecoin which is expected to launch in 2020. All of this has put Facebook executives in the dock as they fear that the social media giant is out to create a parallel financial system.

The greatest threat that could derail Facebook’s cryptocurrency project, however, is from within. Libra is crumbling right now, the latest cryptocurrency news show, and the reason for that is a potential quit from Visa, Mastercard and others who are apparently reconsidering their involvement in the project. The news about this were first shared in an article at The Wall Street Journal.

Visa, Mastercard and other key financial partners are reconsidering their involvement in Facebook’s Libra, people familiar with the matter say https://t.co/P5iOJsM2Y7

— The Wall Street Journal (@WSJ) October 1, 2019

Despite the reports which showed an increase in the interest about Libra, we can now see that the Facebook Libra Association is apparently falling apart. As a source in the Wall Street Journal reports, payments heavyweights such as Mastercard and Visa – along with other financial partners – are having second thoughts about their involvement in the cryptocurrency project.

The Journal cites people familiar with the matter and implies that Libra is crumbling, after Mastercard and Visa are unsure about the regulatory backlash that the coin has been facing on both sides of the Atlantic.

What’s interesting is that Visa and Mastercard are apparently not the only ones who have started doubting Facebook’s cryptocurrency initiative. In some reports earlier, PayPal also said that it is cautious about the future of Libra (even though they were enthusiastic about the project first) following rumors that the first backers of the project were not that happy with the regulatory attention that the initiative was attracting.

However, the report implying that Libra is crumbling is the focal piece in our cryptonews, mostly because of the hints about Mastercard, Visa and PayPal leaving the project. If this happens, the 2020 Libra launch will definitely be sabotaged and the project would not promise the same things as it did before all of this.