\tUS politicians turned the screws on Facebook’s blockchain-based payments play Libra, urging financial institutions backing the scheme to reconsider their involvement.<\/p>\n
Senators pressed the CEOs of Visa, Mastercard and Stripe over the companies’ involvement in the Libra Association, suggesting they will face a high level of scrutiny from regulators if they continued to participate in the group.<\/p>\n
The Libra Association [1], which also counts Vodafone Group, Iliad and other major tech players as members, will run the new global currency and financial infrastructure.<\/p>\n
In a letter to the executives, politicians wrote Facebook “appears to want the benefits of engaging in financial activities without the responsibility of being regulated as a financial services company\u201d. The trio should “expect a high level of scrutiny from regulators not only on Libra-related activities, but on all payment activities\u201d, if they continued to back the play.<\/p>\n
PayPal exit
\nThe warning comes a few days after digital payments player PayPal withdrew from the Libra Association, following increased pressure from regulators.<\/p>\n
Speaking to The Verge, Libra Association policy chief Dante Disparte said the group maintains a commitment not to launch the project until it has addressed all regulatory concerns. Facebook is still targeting a 2020 rollout.<\/p>\n
In addition to the US, the European Commission and national regulators across the globe have expressed concerns about Facebook\u2019s dive into the sector.<\/p>\n[1] https:\/\/www.mobileworldlive.com\/money\/blogs-money\/blog-will-facebooks-libra-get-the-like-it-needs\/<\/p>\n","protected":false},"excerpt":{"rendered":"
US politicians turned the screws on Facebook’s blockchain-based payments play Libra, urging financial institutions backing …<\/p>\n
The post MasterCard, Visa under fire for Libra backing<\/a> appeared first on Mobile World Live<\/a>.<\/p>\n