Visa, Mastercard and eBay have just announced that they are withdrawing from the Libra consortium, Facebook's cryptocurrency. After the departure of Paypal last week, the future of the project seems to be more and more threatened.
Main partners Weight finally resign from participation in the Facebook cryptocurrency project, which is to see the light of day in 2020. The Financial Times newspaper reveals this week that after Paypal it's time for bank card giants Visa and Mastercard withdraw from the Libra Association. Online shopping site eBay and payment system stripe they also officially followed it, informing them of their departure.
Libra is losing its main partners
The Libra project is starting to get out of hand. Many concerns about the stability of cryptocurrency or its reliability in data protection eventually pushed the main actors away. The virtual currency to be launched next year is not well received by governments who fear that such a powerful private company will overshadow traditional banking systems.
Therefore, groups of project partners appear sequentially submit to pressure from political and financial institutions. Companies know that their involvement may attract a little too much attention from the authorities to their actions. All companies present in the Libra Alliance are currently subject to the strict requirements of legislators who are particularly interested in the precautionary measures taken in money laundering. According to critics, the Libra association did not provide sufficient explanation as to how the cryptocurrency will protect consumers and fight potential fraudulent uses.
In addition to persuading key investors to stay in the project, Mark Zuckerberg will have to again appear before the American Congress on October 23 next to defending your currency. Despite this series of reservations and obstacles, The Libya alliance does not give up. Dante Disparte, one of his representatives, said today: "We are looking forward to the inaugural meeting of the board of the Libra association in 3 days and announce the first members."
Source: Financial Times