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Visa and Mastercard may drop involvement in Facebook's cryptocurrency Libra: media report

The finance companies are concerned about regulatory scrutiny in the US and Europe, according to the Wall Street Journal

Facebook's cryptocurrency Libra
Facebook plans to launch the digital currency in June 2020

Visa Inc (NYSE:V), Mastercard Inc (NYSE:MA) and other key financial partners may reconsider their involvement in Facebook Inc’s (NASDAQ:FB) cryptocurrency Libra, according to media reports. 

The companies, which had agreed to help build and maintain the Libra payments network, are now concerned about regulatory scrutiny in the US and Europe and have declined Facebook’s requests to publicly support the project, the Wall Street Journal reported.

Meanwhile, policy executives from the Libra Association, the cryptocurrency’s two dozen backers, have been summoned to a meeting in Washington, DC, on Thursday, the newspaper added.

Facebook announced plans to launch the digital currency in June 2020, in partnership with other members of the Libra Association set up by the US tech giant to manage the project.

However, the attempt to drag cryptocurrencies into the mainstream has since met with regulatory and political skepticism globally, with France and Germany pledging to block Libra from operating in Europe.

Facebook’s David Marcus, overseeing the company’s Libra plans, said in a tweet in response to the WSJ report that he wasn’t aware of any specific companies’ plans to “not step up.”

“I can tell you that we’re very calmly, and confidently working through the legitimate concerns that Libra has raised by bringing conversations about the value of digital currencies to the forefront,” he added.

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