Facebook’s Libra Project is Yet to Receive Financial Support from its Partners

InraNone of the 20 partners currently backing Facebook’s Libra project has supported the project financially, BBC reports today. 

Citing several industry sources, BBC noted that the initial agreement announced in June that all founding members of the Libra Project would have to invest the sum of $10 million to the development of the project had not been met with actions by any of the firms backing the project. 

BBC stated that the matter was not brought up for discussion at the Libra Association’s first general assembly held last week. 

It can be recalled that the Libra Association was officially inaugurated by Facebook on October 14, with Facebook’s David Marcus elected as one of Libra’s five board members.

BBC reports that the association is yet to comment on the development.

Although Facebook has officially launched the Libra Association, but the association’s decision making power is limited as Facebook is opting to give equal rights to both the newly established association and other partners of the project. 

Facebook’s Continuous Saga with Global Regulators

The anticipated launch of the Libra project is currently in jeopardy, considering the persistent regulatory setback the project has encountered since the release of the Libra whitepaper in June. 

Notably, the project has received sanctions from U.S. regulators and the U.N., and the recent loss of seven essential partners, including PayPal, Visa, Mastercard, Stripe, eBay, Mercado Pago, and Booking due to threats by two U.S. regulators requesting the firms to reconsider their stance on the project or face sanctions on their activities.

Despite all the issues associated with the project, Facebook’s boss, Mark Zuckerberg, stated in a testimonial to the U.S. House of Representatives Committee on Financial Services today that the social media giant will continue to wait for regulatory approval before participating in the launch of the Libra payments systems.

“And we support [the Libra Association] delaying its launch until it has fully-addressed U.S. regulatory concerns,” he added. 

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