BBC Report: Not a Single 1 of the 20 Facebook’s Libra Partners Has Paid Their $10 Million Yet
The Libra Association is not facing a good time right now. Not only did several companies decide to back down from being a part of the association after PayPal had dropped out and regulators asked them to back off, but none of the 20 founding members has paid a single cent to support the Libra yet.
From the 21 founding members that have not chosen to give up yet, only Facebook paid up the $10 million USD that all members were supposed to pay. During the announcement of the initiative, it was also announced that each member would have to pay $10 million to participate. It seems that this is not happening, which is not really surprising.
According to reports from the BBC, the members are not even discussing the fees on reunions. The association has officially declined to comment about it, too. This means that, despite the “backing” of the other companies, Facebook is really alone.
The main reason for that might be because most of these companies are very skeptical about Libra ever happening. With such harsh regulatory scrutiny, the chances are that Libra may never be launched and these companies would be losing money by betting on it.
In the last few weeks, several members left the Libra Association. They include PayPal, Visa, eBay, Booking, Mercado Pago, Mastercard and Stripe.
Soon, Facebook CEO Mark Zuckerberg is set to testify before the House of Representatives Financial Services Committee. Yesterday, it was revealed that he would defend that the U. S. needed the Libra to enhance its financial system.