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Backers of Facebook’s Libra mull retreat amid regulatory pressure, press reports

The Financial Times report also revealed the social media giant's exasperation that it was the only one defending the cryptocurrency from criticism

Facebook - Backers of Facebook’s Libra mull retreat amid regulatory pressure, press reports
Facebook unveiled its plans for Libra in June

Some of the original backers of Facebook Inc’s (NASDAQ:FB) proposed cryptocurrency, Libra, are considering withdrawing their support after a regulatory backlash against the plans.

According to a Financial Times report, two of the currency’s 28 founding backers, which include taxi app Uber Technologies Inc (NYSE:UBER), telecoms firm Vodafone Group PLC (LON:VOD) and music streaming group Spotify Technology SA (NYSE:SPOT), are concerned about the regulatory scrutiny on the project and were considering severing their ties.

READ: Government and regulatory criticism means Facebook’s Libra could be dead on arrival

Another backer said they were concerned that their public support of Libra would attract the attention of agencies that regulate their own businesses.

The report also said that Facebook itself was becoming exasperated with other founding members not publicly supporting the project.

Concerns over Libra have continued to mount since Facebook unveiled the project in June, with news emerging this week that the currency is currently subject t an investigation by the EU’s anti-trust regulator.

Libra has also attracted the ire of US President Donald Trump as well as Jerome Powell, the head of the Federal Reserve.

Facebook is hoping that Libra, which will derive its value from a basket of different assets and fiat currencies, as a payment method across its platforms including WhatsApp and Instagram.

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