- Ebay, Mastercard, Visa, and Stripe have left the Libra Association
- This comes one week after PayPal Inc. Left the association
- Facebook’s Libra has faced an unending barrage of regulatory problems until now
According to a report by CNBC published on October 11, 2019, Facebook’s Libra cryptocurrency project seems to be going further down the spiral as some of its major partners including the likes of eBay, Stripe, Mastercard, and Visa are all dropping out of the ambitious project.
Another Jolt for Libra
Facebook Inc.’s ambitious digital currency project Libra which came to the forefront of the global cryptocurrency market during mid-2019 is now in quite a bit of a fix. Per sources close to the matter, a number of giant multinationals have decided to quit the Libra Association membership seeing the unending barrage of regulatory hurdles the project has had to face since its inception.
eBay, Stripe, Mastercard, and Visa have all decided to quit the Libra Association effective from October 11, 2019. Regarding their decision to bid adieu to the Libra Association, the four companies stated that they “respect and see potential in the project” but for the time being, have chosen to focus on other efforts.
Regulators Proving to Be a Pain Point for Libra
Speaking to CNBC, a Stripe spokesperson said that the firm is supportive of projects that aim to make online commerce more accessible for people around the world and that it is open to working with the project at a later stage.
Similar sentiments echoed in the statement of a VISA representative. They said:
“[Visa] will continue to evaluate and our ultimate decision will be determined by a number of factors, including the Association’s ability to fully satisfy all requisite regulatory expectations. Visa’s continued interest in Libra stems from our belief that well-regulated blockchain-based networks could extend the value of secure digital payments to a greater number of people and places, particularly in emerging and developing markets.”
Notably, the exit of four new participants from the Libra Association comes just one week after international payments giant PayPal Inc. announced their exit from the project. Further, shortly following the exodus new, David Marcus, the current chief of Libra and former President of PayPal Inc. took to Twitter to “caution against reading the fate of Libra into this update.”
I would caution against reading the fate of Libra into this update. Of course, it’s not great news in the short term, but in a way it’s liberating. Stay tuned for more very soon. Change of this magnitude is hard. You know you’re on to something when so much pressure builds up.
— David Marcus (@davidmarcus) October 11, 2019