Seven of the 27 parties participating in Facebook's digital currency say that their support is not yet definitive. The New York Times writes that based on sources. They have also not yet paid the deposit of 10 million dollars.

They will only do this if there is more clarity about how exactly the libra works. It is not said which parties are involved. Last week, the Financial Times also reported that parties off the record said they would withdraw if the results were not what they hoped for.

The support of the parties is therefore not yet certain, while that is very important for the success of the initiative. Among the 27 parties are big names such as credit card companies Mastercard and Visa, taxi service Uber, music service Spotify, cryptocurrency platform Coinbase, telecom provider Vodafone and payment service PayPal. The fact that they attached their name to the initiative gave it extra weight.

Mixed feelings

According to sources, a number of parties did not want to release a press release or talk to the media about why they support the libra. In addition, financial parties such as Mastercard may have a double feeling at the table because the libra can mean competition for them. For parties such as Uber and Spotify, for whom the libra becomes an extra payment option, things are different.

At the launch last week, it was immediately noted that large (American) banks were not surprisingly on the list. According to The New York Times, Facebook has approached a number of "large financial companies", such as investment banks Goldman Sachs and JPMorgan. The parties said no, in part because of concerns about the supervision of crypto coins.

A spokesman for the Libra Association, the organization that will control the currency, tells the newspaper that since the launch there has been much interest from other companies. Names are not mentioned. There would even be a waiting list to be among the hundred companies that are allowed to launch the libra next year.

'High expectations'

In the meantime, regulators are also looking critically at the libra. The US Federal Reserve president, Jerome Powell, said yesterday that they "look very carefully" at Facebook's plans. He warns Facebook that the company will have to meet the highest consumer protection requirements.

The bitcoin seems to be on the rise again due to all the attention for the libra, even though they are different products. "You see all the news about the libra, which is generating renewed interest in the bitcoin," an analyst told Reuters news agency. The rate of the bitcoin has risen by 3000 dollars since last Tuesday and is now at more than 12.600 dollars.

Load More Related Articles
Load More By WeeklyNews staff
Load More In Business

Leave a Reply

Your email address will not be published. Required fields are marked *

Check Also

Swiss ski season will never be the same: the odd rules for tourists and sportsmen are here

The winter sports season has officially started again and unlike last year, most European …