The Libra Association lost the support of five major industry players at once – Visa, Mastercard, eBay, Stripe and MercadoPago. Companies refused to participate in the Facebook cryptocurrency project just three days before signing the charter of the Libra Council.
The Financial Times reported Friday that eBay and Stripe left Libra’s cryptocurrency project, citing political pressure, following electronic payment giant PayPal, which announced its refusal to continue participating last week.
Representatives of Visa and Mastercard also confirmed that their companies are going to leave the project.
Mastercard decided it would not be a member of the Libra Association. We remain focused on our strategy and our own efforts to ensure financial accessibility worldwide. We believe there are potential benefits to such initiatives, and we will continue to monitor Libra’s efforts.
A Visa spokesman also explained the company’s reluctance to join the project: “Visa has so far decided not to join the Libra Association. We will continue to analyze the situation, and our final decision will be determined by a number of factors, including the ability of the association to fully satisfy all the necessary regulatory expectations. Visa’s interest in Libra is explained by our belief that blockchain-based networks can provide secure digital payments for more people and places, especially in emerging markets. ”
An eBay spokesperson said that despite the fact that the company respects the concept of the Libra Association, it decided to focus on its own developments for its customers.
Stripe, a payment company, recognizes Libra’s potential, but prefers to focus on supporting projects that develop online commerce globally. The payment company Mercado Pago decided to refrain from participating in the Association, promising to observe the development of events around Libra.
Due to the fact that the Association continues to decline, the head of Calibra, David Marcus, admitted that he was upset, but thanked Visa and Mastercard on his Twitter, trying to maintain a good face in a bad game:
I would especially like to note Visa and Mastercard for holding on until the last moment. The pressure was very strong, and I respect their decision to wait until there is regulatory clarity regarding Libra
The decision of Visa and Mastercard left the Association without payment processors in the USA, alone with the growing regulatory threat. However, next week it is planned to hold the first official meeting of the Libra Association, at which the remaining 23 members, including Facebook and its subsidiary Calibra, must sign the charter. A Facebook spokesman confirmed on Friday that the meeting should be held in accordance with the approved plan.