Visa, MasterCard, Stripe, & eBay Announce Their Departure From Libra Association

Visa, MasterCard, Stripe, & eBay Announce Their Departure From Libra Association

Facebook’s plan of launching its Libra cryptocurrency is once again threatened with major partners like MasterCard, Visa, eBay, and Stripe announcing their departure from the Libra Association. It has only been a week since PayPal declared that it no longer wishes to be a part of Facebook’s cryptocurrency project.

While the project was initially backed by 28 partners, with the likes of Visa, eBay, MasterCard, and Stripe leaving the Libra Association, only two of the payment companies (PayU and Mercadopago) are now left currently supporting the Libra cryptocurrency. According to the CNBC report, Uber and Lyft have highlighted that they aim to continue their support for Facebook’s cryptocurrency.

The announcement was made by the companies on Friday, October 11th, 2019. The decision for parting ways with Facebook stemmed from the increasing scrutiny from governments and regulatory bodies from across the world. The lawmakers have actively highlighted their concerns on multiple occasions regarding the potential impact of Libra cryptocurrency on the global financial system as well as how the Facebook authorities pledge to ensure consumers’ protection.

The Departure May Be Temporary

The officials from companies like Stripe and Visa have stated that their interest in the Libra cryptocurrency remains intact. The project may have the potential to enhance access to eCommerce for people from all over the world. However, unless the regulatory bodies are not fully convinced and satisfied, they would like to part ways and focus their efforts on the long-term interest of the company. This suggests that their departure may be temporary and the ultimate decision will be made at a later stage that will consider multiple factors including how well does the Libra Association manages to settle down the rising concerns.

eBay and MasterCard were also reported to have quoted that their decision are independent of the earlier announcement by PayPal and that the businesses have been considering a similar move for some time. The Libra Association Council was set to meet and hold a discussion on October 14th, which is now expected to be pushed back owing to the rising complications.

Mr. Zuckerburg To Appear Before House Financial Services Committee

According to the latest reports, Mr. Mark Zuckerburg, the current CEO of Facebook, has been invited by the U.S lawmakers to the House Financial Services Committee to testify later this month.

Despite the bad news, Mr. David Marcus, head of the Libra project, has taken it to Twitter and highlighted that the fate of Facebook’s cryptocurrency is in no way defined by the latest developments. Expressing his hope and passion for the project, he further highlighted that the intense pressure is only a part of the project that’s as huge as the launch of Libra cryptocurrency.  

By Michael Harris
Specialising in economics by academia, with a passion for financial trading, Michael Harris has been a regular contributor to Invezz. His passion has given him first hand experience of trading, while his writing means he understands the market forces and wider regulation.
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