eBay, Stripe, Mastercard, And Others Back Out Of Libra Project
EBay, Stripe, Mastercard, Visa, and Mercado Pago have all decided to drop out of Facebook’s libra cryptocurrency project. This news is followed after PayPal’s announcement to withdraw as government regulators continue to scrutinize the plans.
The companies stated that they do respect and find potential in the project but for now they are willing to prioritize and focus on other efforts. A statement by Stripe spokesperson mentions that the company “is supportive of projects that aim to make online commerce more accessible for people around the world.”
Stripe will “remain open to working with the Libra Association at a later stage,” he said.
A Visa spokesperson said the company “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.”
As more and more questions regarding consumer protection and impact on sovereign currencies come up, the more the original alliance of 28 corporate backers of the libra cryptocurrency seems to go downhill. PayU has not backed out of the project, being the only payment company to do so. Also, original backers, Uber and Lyft told CNBC they are not changing their stand on their involvement in the project.
The fact that eBay, Stripe, and Mastercard were each dropping out one after the other, it was pretty clear that they have been planning to do this around the same period. A scheduled Libra Association Council meeting on Oct. 14 was all set, and all these decisions were made before it. Mark Zuckerberg will be testifying in front of the House Financial Services Committee later this month when Libra’s cryptocurrency project will be in the spotlight in front of U.S. lawmakers.
The leader of Libra project, David Marcus, who was previously the president of PayPal, took to Twitter hours after the announcements. He was basically advising people to stay cautious and to refrain from reading against the fate of Libra into this update.
In July, Marcus testified before the committee. At the time, representatives including Chairwoman Maxine Waters, D-Calif., questioned Marcus on whether Facebook would postpone its plans until the necessary regulations were in place. However, they failed to get a positive response from Marcus, and Waters even claimed that his answer “was not a commitment.”
In a statement, policy and communication head Dante Disparte said, “We are focused on moving forward and continuing to build a strong association of some of the world’s leading enterprises, social impact organizations and other stakeholders to achieve a safe, transparent, and consumer-friendly implementation of a global payment system that breaks down financial barriers for billions of people. We look forward to the inaugural Libra Association Council meeting in just three days and