By Andrew Ackerman

WASHINGTON--Banks and other financial-services companies will eventually support Facebook Inc. on its global cryptocurrency-based payments network, said David Marcus, the Facebook executive who has headed the project.

Mr. Marcus, speaking in Washington on Wednesday, struck an upbeat tone in the face of a series of challenges for the venture. He said it was harder for heavily-regulated financial service companies to remain committed to the project, but said they would come around once it is able to address skepticism from global regulators.

"Once we've done this, then you'll see more banks and more financial services players," he said, speaking on a panel hosted by the International Monetary Fund.

Facebook in June revealed plans to launch a new cryptocurrency, known as libra, and a digital wallet called calibra that would be used to pay for goods online and send money world-wide.

A cloud hangs over the project's future after several large financial companies have backed out of coalition of companies that had originally signed on to help launch the libra cryptocurrency. They include Visa Inc., Mastercard Inc., PayPal Holdings Inc. and eBay Inc

The departures came after lawmakers, central bankers and regulators expressed concerns about the project, based on Facebook's prior missteps in data privacy and skepticism that the company could prevent libra from being used to launder money.

Facebook Chief Executive Mark Zuckerberg is slated to testify about the project Oct. 23 before the House Financial Services Committee. The panel's chairwoman, Rep. Maxine Waters (D., Calif.), has called on Facebook to abandon plans to implement libra.

(END) Dow Jones Newswires

October 16, 2019 13:16 ET (17:16 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.
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