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Regulators doubt Facebook cryptocurrency. So too his partners.



The largest American cryptocurrency company, Coinbase, was one of Libra's 27 original partners. When the partnership was announced internally, several Coinbase employees expressed concern that their company was merging with a giant company like Facebook. According to two employees of the company, crypto currency fans, such as privacy, are extremely worried.

A spokeswoman for Coinbase declined to comment.

Joe Lallouz, managing director of Bison Trails, another cryptocurrency company that partnered with Libra, also expressed skepticism when Facebook approached him.

"My first reaction was, 'I do not have the best track record from a privacy point of view,' said Mr Lallouz in an interview after the announcement. "Facebook's reputation for privacy and trust is contrary to the crypto ethos."

According to Lallouz, however, Facebook has a serious concern to protect the privacy of its users by ensuring that there is not too much privacy control over the project.

Facebook executives said Libra's design was inspired by Bitcoin's decentralized structure, with governance transferred to the association, where Facebook will only have a vote of 100 potential partners.

"They are already giving up control and ownership, which is huge," said Lallouz.

It is expected that the partners will meet in the coming months to write a statute governing the association.

The story of Facebook with partners has contributed to their caution. Game maker Zynga, for example, suffered a dramatic loss of sales after Facebook withdrew from a close relationship with the company. Facebook also weighed on relationships with many publishers last year as it changed the algorithms for its newsfeed to lessen the emphasis on news.

"This is an enormous opportunity, but there are still many details that need to be worked out. "Mr. Lallouz said.


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