Facebook’s Libra cryptocurrency may lose key financial backers

Facebook’s Libra key financial backers like Visa and Mastercard are reportedly considering backing out from the cryptocurrency project.

Facebook Libra is scheduled to launch in June 2020. (Reuters)

Facebook's 'Libra' cryptocurrency has been hit by waves ever since its announcement. Libra hasn't even been launched yet and the Facebook already has regulatory problems looming over its head. New reports now suggest Facebook may just lose its major financial backers.

According to a report by the Wall Street Journal (via Reuters) Visa, Mastercard and other financial partners are reconsidering their support for Facebook's cryptocurrency project citing regulatory concerns. Bloomberg further reports that PayPal and Stripe have not finalized if they should officially get onboard Facebook's Libra project.

The report states that these companies are concerned about their relationship with regulatory authorities who have been scrutinizing Facebook over its cryptocurrency plans. Company executives have also expressed concerned over how Facebook is still not mending its ways around user data and privacy on its platform.

These companies are yet to sign a formal agreement on joining Libra. They have so far only signed nonbinding letters expressing interest to join Libra, the report said. In response, Facebook's Libra Association has now reportedly asked its members to reconsider and confirm their involvement later this month.

Facebook announced plans of its blockchain-based cryptocurrency Libra earlier this June. Unlike other cryptocurrencies, Libra would be available to everyone through Facebook's social networking platform. The company aims to make it accessible to all who have a smartphone and data connectivity. Facebook also unveiled its 'Calibra' digital wallet to support the cryptocurreny. Calibra will be available as a standalone app and also in Messenger and WhatsApp.