Facebook’s Libra has taken a lot of backlash from regulators, governments and the crypto community. While some are worried about the size of the organization and its plan to launch a global stablecoin, others are concerned about their privacy. Facebook already landed a $5 billion fine for the misuse of customer data. Although the organization may eventually scale through regulatory hurdles, that is not going to happen anytime soon.
Some of Facebook’s early backers for Libra are growing tired of the fierce regulatory battle. At least two of its early backers are having second thoughts about supporting the project, a report on the Financial Times alleges. They feel that their public support of Facebook’s Libra may draw undue regulatory scrutiny to their businesses.
Partners are now turning to blame Facebook for its strategy. One noted that some background work should have been done before announcing the launch of the project.
Some of those conversations should have taken place before the launch, to understand how regulators would think about this, so there wasn’t so much pushback.
Facebook, on the other hand, is becoming weary of being at the limelight for the wrong reasons when there are other backers involved in the project, a source said.
There’s no doubt that the annihilation of Facebook’s Libra will bring some form of joy to members of the crypto community. Core cryptocurrency fanboys are against anything that appears to be centralized or government-based.