World News

Mastercard and Visa pull out of Facebook’s Libra

Mastercard and Visa pull out of Facebook’s Libra

Another eBay spokesperson noted that the firm would rather focus on its own payments experience for now.

"We look forward to the inaugural Libra Association Council meeting in just three days and announcing the initial members of the Libra Association".

USA lawmakers expressed skepticism when Facebook discussed its plans for Libra during a July Senate hearing.

These include Mastercard and Visa, as well as eBay, Stripe and Mercado Pago.

"We appreciate Stripe, Mastercard and eBay's support for the goals and mission of the Libra project", he said.

With these withdrawals, Libra is left with no major U.S. payment processor.

Facebook is losing more friends in its initiative to launch Libra, and PayPal's announcement to withdraw from the Libra Association seems to have exposed the cracks inside an association that is starting to fall apart.

More news: Trump financial records must be given to Congress, appeals court rules

Despite those efforts, financial regulators, as well as members of Congress on both sides of the political divide, noted the privacy issues raised with the social networking company controlling a currency, while also expressing concern about how Libra could be used for money laundering like Bitcoin or Ether, other digital currencies.

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.

All five departures come less than a week before the Libra Association's official signing ceremony, which is to be held in Switzerland.

The decision by eBay, Stripe, and Mastercard comes just a week after PayPal's departure from the project.

The Libra Association is composed of about two dozen organizations, including Facebook. Facebook CEO Mark Zuckerberg will testify before the House Financial Services Committee on October 23 , where he is likely to face questioning regarding Libra.

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.

"Visa's continued interest in Libra stems from our belief that well-regulated blockchain-based networks could extend the value of secure digital payments to a greater number of people and places, particularly in emerging and developing markets".