PayPal and bank card networks could face tighter regulation over Facebook’s cryptocurrency program

Visa, Mastercard and PayPal may be early supporters of Facebook’s new digital currency Libra, according to media reports, but it may also magnify the biggest risk they will face — tighter regulation. James Faucette, an analyst at Morgan Stanley, said the three companies would face a potentially “heavy burden” as the already intense regulatory reviews were likely to continue to intensify.

Both the U.S. senate and house of representatives will hold hearings this month on Facebook’s digital currency plan.

“These hearings are critical for Facebook,” Seiberg said. “there’s only one chance to frame the debate. In these two hearings, Libra must set the tone for protecting consumer privacy while also benefiting consumers.” That will be a tall order, however, as the hearings are likely to be hostile and most lawmakers are likely to be sceptical.