10/2/2019, 3:07 AM (Source: TeleTrader)
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Mastercard, Visa reconsidering Libra involvement - report

Mastercard Inc. and Visa Inc. are among a handful of companies that are re-examining their involvement in Facebook Inc's Libra project, the Wall Street Journal reported on Wednesday citing sources familiar with the matter.

According to the sources, executives of some of Libra's backers, known as the Libra Association, have declined Facebook's requests to publicly support the project for fear of attracting regulatory scrutiny. They added that the United States Treasury Department sent letters to companies including Mastercard and Visa asking them for a complete overview of their money laundering programs and where Libra will fit into them. However, they said that when the association's members asked Facebook for information on these matters they did not receive detailed answers.

In addition, it is unclear how many members will commit to the cryptocurrency as they have signed nonbinding letters of intent and none of them have provided the $10 million that Facebook requested from each members to fund the creation of the coin and the network. The sources concluded by saing that policy executives from the association will meet in Washington, DC on Thursday and in Geneva on October 14 to review its charter and appoint a board of directors.

Breaking the News / DZ