Members of the Libra project, begin to abandon it little by little

Pound cryptocurrency

Yesterday we shared the news on the possible position in favor they would take PayPal, Visa, MasterCard with Libra (Facebook's cryptocurrency), news that now has taken the opposite case, Ya que Visa, MasterCard, eBay, Stripe and Mercado Pago, founding members of the association, announced on Friday that they are abandoning the Libra project.

The news comes a week after the announcement of PayPal's withdrawalas government regulators continue to scrutinize the plans. The withdrawal of the project of the main companies payment, including Mastercard and Visa Inc., it is a serious problem for the project nascent and the ambitious efforts of Facebook Inc. to establish a global digital currency.

This led to the withdrawal of PayPal, the first member of the association to leave the project. Last Wednesday, two high-ranking Democratic senators wrote to Visa, Mastercard and Stripe telling them to be wary of a "project likely to fuel the growth of global criminal activity."

Libra is slowly losing support

These withdrawals mean that the Libra Association you can't trust these major payment processors to help consumers convert their currency to Libra and facilitate your transactions.

In a statement, a Visa spokesperson said Friday that the company will continue to evaluate and that the final decision will be determined by a number of factors, including the association's ability to meet all regulatory requirements.

The Internet Payment Company "Stripe" gave a similar explanation for his withdrawal.

"Stripe supports projects that make online commerce more accessible to people around the world," said the company spokesman. Libra has this potential. We will monitor your progress closely and remain open to working with the Libra Association at a later stage.

eBay has approached in the same direction than the first two companies and comment:

“We highly respect the vision of the Libra Association. However, eBay has made the decision not to move forward as a founding member. Right now, we are focusing on implementing the eBay managed checkout experience for our customers.

These decisions are presented before the Libra Association Council meeting scheduled for October 14. This meeting in Geneva will likely lead to more specific and definitive commitments from all the members involved, which may have inspired the recent string of defections by some founding members.

David Marcus who runs the Libra project and was previously president of PayPal, spoke at Twitter a few hours after the announcements. In response to the news, he acknowledged that the news was not good, but "liberating" to "know that we are on to something when so much pressure increases."

Libra will go ahead with plans to formally charter the association in three days Despite the setbacks, Dante Disparte, its head of policy and communication, said in a statement.

"We are focused on moving forward and continuing to build a strong partnership of some of the world's leading companies, social impact organizations and other stakeholders," he said.

“Although the membership of the Association may grow and change over time, Libra's governance and technology design principle, coupled with the open nature of this project, ensures that Libra's payment network will remain resistant".

However, the exits leave the project in a precarious situation, while Facebook is making efforts to move beyond the initial criticism of the project.

While Facebook's original coalition of 28 companies backing crypto appears to be on the decline, Mark Zuckerberg, the company's chief executive, is expected to discuss the project when he testifies before the U.S. House of Representatives Committee on Financial Services. on October 23.

Finally, we only have to wait for the resolution by the different financial services and especially if the project gets the green light, even if things turn out otherwise, Mark Zuckerberg does not seem to take a step back on the issue.


A comment, leave yours

Leave a Comment

Your email address will not be published. Required fields are marked with *

*

*

  1. Responsible for the data: Miguel Ángel Gatón
  2. Purpose of the data: Control SPAM, comment management.
  3. Legitimation: Your consent
  4. Communication of the data: The data will not be communicated to third parties except by legal obligation.
  5. Data storage: Database hosted by Occentus Networks (EU)
  6. Rights: At any time you can limit, recover and delete your information.

  1.   Angel Mota said

    Sorry for Facebook, but Libra kicked the bucket.