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Visa and MasterCard are apparently reluctant to cryptocurrency Libra

2019-10-02T05:53:21.917Z


Facebook's financial partners MasterCard and Visa are apparently reluctant to participate in building the cryptocurrency Libra. According to the Wall Street Journal, the companies are being deterred by the skepticism of the authorities.



The resistance is great, even in Germany. After the US and France, the federal government had recently indicated that they did not want to allow the cryptocurrency planned by Facebook and the Swiss Libra Foundation. In the light of this criticism, a major report has now also put its stakehold- ers on the test.

The credit card providers Visa and MasterCard and other financial partners were deterred by the resistance, the Wall Street Journal reported, citing insiders. According to this, Facebook failed with some of the companies involved to make Libra public support.

PayPal should also be undecided

According to information from the financial services Bloomberg and the online payment services PayPal and Stripe are now undecided because of the regulatory headwinds. The companies initially did not comment on the reports on demand.

Facebook had recently rejected concerns from overseers that Libra could intervene in the sovereignty of central banks. In the digital currency, no new money will be spent, which is reserved for sovereign states, said in the online network for the development of Libra responsible manager David Marcus. States fear, however, that they could lose their monetary monopoly on private companies.

Facebook originally wanted to introduce the planned digital currency next year. However, Germany and France in particular are against it. The news agency Reuters learned from the head of the Libra Association, Bertrand Perez, that the introduction of the currency could be postponed because of concerns.

Libra is to be backed one to one with a basket of stable currencies and government bonds according to previous plans. For the first time, the company also gave an insight into how the basket should be put together. If someone buys Libra with a classic currency, the money should go straight to that fund. Libra would then act as a system for fast international transfers.

Politicians and regulators, however, also fear that the fund could lead to financial market disruptions given Facebook's huge user base.

Source: spiegel

All business articles on 2019-10-02

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