Facebook officially moved forward with its plans Monday to create a new digital currency called Libra, despite several high-profile defections from the project and intense criticism from U.S. regulators and politicians. The Libra Association, the nonprofit that will govern the currency, officially signed on 21 charter members on Monday at the organization's inaugural meeting in Geneva. Originally the Libra Association had 27 potential members, but several companies dropped out in recent days, including Visa, Mastercard and PayPal. Most of the remaining members of the Libra Association consist of venture capital firms, who often have an eye on emerging technologies and align with Facebook's interests, as well as nonprofits. But some larger companies who are now members of the association include Uber, Lyft, Spotify and European telecommunications company Vodafone.
Nearly every payment firm that initially agreed to join Facebook's cryptocurrency Libra has backed out, in a potentially fatal blow to the social network's plan for a worldwide digital currency. Visa and Mastercard said on Friday they would no longer participate in the Libra Association and Latin American payment system Mercado Pago announced it would back out as well. Several other large companies have announced their departures . The payment processing company Stripe said it was stepping back, as well as the online auction company eBay. PayPal was the first of Libra's big partners to exit, announcing last week it would no longer be involved.
Fox News Flash top headlines for Oct. 4 are here. Check out what's clicking on Foxnews.com PayPal is pulling out of a group of companies assembled by Facebook to launch its new cryptocurrency payments network. The company has decided to "forgo further participation" in the Libra Association a spokesperson told The Wall Street Journal on Friday. The news comes just days after the Journal reported that other financial partners who agreed to work with Facebook on the project are having second thoughts.
Facebook CEO Mark Zuckerberg is appearing before the House Financial Services Committee on Wednesday to discuss his plans for the new cryptocurrency libra. Zuckerberg's testimony follows the July congressional hearing of David Marcus, the executive in charge of Facebook's libra project, in which lawmakers said they were disappointed with his vague answers. In his prepared opening remarks, Zuckerberg spends much of his time discussing Facebook's civil rights plans, diversity record and how the company's libra project will bolster national security. He will then field questions from members of the committee.
Sun 15 Sep 2019 08.54 EDT Last modified on Sun 15 Sep 2019 09.00 EDT Global regulators will question Facebook on Monday about its Libra cryptocurrency amid concerns from EU governments over the threat the digital currency poses to financial stability, according to the Financial Times. Officials from 26 central banks, including the US Federal Reserve and the Bank of England, will meet with representatives of Libra in Basel on Monday, the FT said, citing officials. Libra's founders have also been requested to answer key questions about the currency's scope and design, FT said. Facebook did not immediately respond to Reuters' request for comment outside regular business hours. Countries including France and Germany have publicly criticised the social media giant's Libra project, saying it posed risks to EU states' sovereignty.