As reported in the Wall Street Journal, some of Facebook’s partners who signed on to develop the payments systems for the Libra project are now reconsidering their involvement. At the heart of the matter is the fact that companies like Visa Inc., Mastercard Inc. and others have been reluctant to announce their support for the project publicly.

This should not come to much surprise, as governments and regulators are still weary of blockchain based coins and contracts that will have an impact on financial markets and systems going forward. Understandably the major card payment providers of the world do not seek additional regulatory attention at this time and, as such are reevaluating their position on Libra coin.

One could argue that Facebook should have went about Libra in a different way, pegging it to the major fiat currencies for example. Such an approach may have alleviated some of the negative and skeptic feedback from regulators. It will be interesting to see how Facebook attempts to remedy this situation and put market participants at ease, while saving the Libra project from possible future extinction.