Facebook Libra loses support from Visa, Mastercard, eBay, and Stripe

Facebook Libra loses support from Visa, Mastercard, eBay, and Stripe

Visa and Mastercard said Friday they would no longer participate in the Libra Association and Latin American payment system Mercado Pago announced it would back out as well.

On Oct. 11, Bloomberg reported that Ebay, Stripe and Mastercard had chose to drop out of Facebook's Libra cryptocurrency project.

"Visa has decided not to join the Libra Association at this time", the company said in a statement. "Libra has this potential", Stripe told The Register.

After PayPal's departure last week, Facebook did not waver in its support of Libra and is unlikely to do so, at least in the immediate future. "But first it needs to do no harm". The Libra Association has scheduled a meeting to nominate the board of the project next week. Another eBay spokesperson noted that the firm would rather focus on its own payments experience for now. Other companies that have not signaled plans to leave include Uber Technologies Inc., Spotify Technology S.A., Coinbase Inc. and telecom providers Iliad SA and Vodafone Group Plc.

"Visa's statement per CNBC went even further saying "[Visa] will continue to evaluate and our ultimate decision will be determined by a number of factors, including the [Libra] Association's ability to fully satisfy all requisite regulatory expectations.

Facebook and Libra didn't immediately respond to a request for comment.

As a matter of fact, the announcement comes just two days before the Libra Association's meet in Geneva, where the members are expected to sign a chartered agreement. That implied that all the behemoth US-based payment processors had distanced themselves from the Libra association.

The rapid succession of exits by major financial companies Friday afternoon suggested that scrutiny was taking its toll.

The concern about Libra meeting regulatory guidelines is especially pertinent as Facebook founder Mark Zuckerberg is set to testify in front of the U.S. House Committee on Financial Services on October 23rd.

The company said it would have 100 members on the list by the time of Libra's launch, which is still planned for next year. Some time last month, German and France stated that they would block the development of Libra in their countries.

Facebook's head of the project, former PayPal executive David Marcus, cautioned on Twitter against "reading the fate of Libra into this update", although he acknowledged "it's not great news in the short term".

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