A new report by the Wall Street Journal claims that JP Morgan Chase and Goldman Sachs declined to join Facebook’s libra due to concerns over the digital currency’s potential use in illegal activity.
Wall Street banks JPMorgan and Goldman Sachs reportedly declined to get involved in Facebook’s digital currency libra due to the potential for its use in illicit activities.
According to a new report published by The Wall Street Journal, both banks were hesitant to support Facebook’s digital currency or the Libra Association due to fear of its use in criminal activity. The report follows on the heels of large name supporters withdrawing from the Libra Association, including Visa, Mastercard, and PayPal.
The WSJ reports that JPMorgan Chase and Goldman Sachs declined invitations to join libra because of the potential for the digital currency’s use in money laundering and violating sanction laws. The report claims that Facebook will likely rethink its June 2020 target launch, following massive regulatory pressure and the withdrawal of support from PayPal, Mastercard, Visa, and others.
Facebook CEO Mark Zuckerberg revealed in a series of leaked tapes that the social media platform anticipated contention from regulatory bodies and purposefully announced libra prematurely to solicit community feedback. Zuckerberg is set to testify before Congress in a panel concerning libra on Oct. 23.