Published: Sat, October 12, 2019

Mastercard and Visa pull out of Facebook’s Libra

Mastercard and Visa pull out of Facebook’s Libra

Recently we got to know that PayPal pulled out of the Libra Association and will no longer be a founding member of the cryptocurrency.

I would caution against reading the fate of Libra into this update. "At this time, we are focused on rolling out eBay's managed payments experience for our customers".

Earlier this week, two United States senators cautioned Visa, Mastercard and Stripe to reconsider their involvement in the project.

Facebook has faced fierce backlash since the company announced plans for Libra.

Congressional scrutiny isn't going away. Later this month, Chief Executive Officer Mark Zuckerberg is scheduled to appear before the House Financial Services Committee to answer even more questions about Libra. The letters suggested that the companies may not have been fully aware of the regulatory risks inherent in the project.

All the companies said the support the project but will focus efforts elsewhere.

"We appreciate Stripe, Mastercard and eBay's support for the goals and mission of the Libra project", he said. "Libra has this potential", Stripe told The Register.

The Libra Association is composed of about two dozen organizations, including Facebook.

And then there were 23: When Facebook unveiled its plans in June for the currency it calls Libra, it also revealed that 27 other firms-including big names like Visa, Mastercard, PayPal, Uber, and Spotify-had signed on to participate in the Libra Association, a Switzerland-based nonprofit Facebook has set up to develop and maintain the currency. "Libra has this potential We will follow its progress closely and remain open to working with the Libra Association at a later stage".

Each of the companies released statements on the matter echoing similar sentiments, generally espousing that while they are supportive of new ideas to improve commerce, they have made a decision to drop their initial support for Libra. A Lyft Inc. spokeswoman confirmed on Friday that the ride-hailing company remains a member. They join PayPal Holdings Inc PYPL.O which exited the group a week ago, as global regulators continue to air concerns about the project.

"Although the makeup of the Association members may grow and change over time, the design principle of Libra's governance and technology, along with the open nature of this project ensures the Libra payment network will remain resilient".

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