Mastercard Inc., Visa Inc., PayPal Holdings Inc. and Stripe Inc. are reconsidering whether to officially support Facebook Inc.'s digital currency Libra amid regulatory backlash, Bloomberg News reported, citing sources.
The payment companies reportedly believe Facebook oversold the extent of regulatory acceptance for Libra and are keen on maintaining positive ties with the authorities. They also raised concerns on the social media giant's failures in addressing issues such as user data and privacy.
David Marcus, head of Facebook unit Calibra that will manage the Libra currency, reportedly said he was not aware of any Libra partners that might back out of the project.
The development came as the Libra Association is working to formalize partnerships with Libra's 28 founding members. The signing of Libra's charter could reportedly take place as early as Oct. 14 in Switzerland, where the nonprofit organization would be based.
Companies that officially join Libra's charter would not be required to immediately contribute the required initial investment of $10 million, in a bid to give them more time to assess the extent of their participation, according to the report.
Facebook said it will delay Libra's launch until all regulatory concerns are addressed, adding it will cooperate with regulators reviewing plans related to the digital currency.
