Wednesday, 16 October 2019
Latest news
Main » Payment firms back out in painful blow to Facebook’s cryptocurrency Libra

Payment firms back out in painful blow to Facebook’s cryptocurrency Libra

12 October 2019

"At this time, we are focused on rolling out eBay's managed payments experience for our customers".

The departures on Friday came after U.S. senators sent letters to several financial firms noting that they could face "a high level of scrutiny from regulators" if they participated in the new currency plan.

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. "We believe there are potential benefits in such initiatives and will continue to monitor the Libra effort".

"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", spokesman Dante Disparte said in response to an AFP inquiry.

More news: Chris Cuomo Says His Pronouns Are ‘She, Her, and Hers’

As of now, the Libra Association members are facing a lot of pressure from governments and regulators, many of whom find the project threatening to the existing financial system.

The Libra Council will hold its first official meeting on October 14 in Geneva.

The latest exodus leaves the Libra Association without any remaining major payments companies as members, meaning it can no longer count on a global player to help consumers turn their currency into Libra and facilitate transactions. Their initial agreement to join the Libra Association instantly gave Facebook's project legitimacy.

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

More news: Renault removes Thierry Bolloré as CEO

We highly respect the vision of the Libra Association.

"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", he said.

But both Visa and Mastercard made it clear from the onset that their interest in Libra was at least partly out of curiosity.

At the same time, online payment processing company Stripe also announced it was cutting ties with the Libra Association, albeit not ruling out the idea of getting involved again in the future if development is more favorable.

More news: Edmonton Oilers' James Neal goes on scoring spree, nets four vs. Islanders

Payment firms back out in painful blow to Facebook’s cryptocurrency Libra