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

Cheryl Sanders
October 12, 2019

Facebook's digital currency plans took a major hit today as Visa, Mastercard, eBay, and Stripe have followed PayPal's example and backed out of the nonprofit Facebook set up to manage the currency.

"Stripe is supportive of projects that aim to make online commerce more accessible to people around the world".

Last week, digital payments firm PayPal said it was quitting the alliance of companies and organizations promoting Libra.

Facebook's deteriorating relationships with potential Libra partners, combined with intense scrutiny from lawmakers, leaves the future of the initiative uncertain.

"Although the makeup of the association members may grow and change over time, the design principle of Libra's governance and technology, along with the open nature of this project, ensures the Libra payment network will remain resilient", spokesman Dante Disparte said in response to an AFP inquiry.

In a statement, the spokeswoman said the group was "focused on moving forward and continuing to build a strong association" as it worked to create 'a safe, transparent, and consumer-friendly implementation of a global payment system that breaks down financial barriers for billions of people'.

Facebook announced plans to launch the digital currency in June 2020 in partnership with other Libra Association members.

This time around, Visa, Mastercard, eBay, and Stripe are pulling their support. But it ended on an upbeat noted, pointing toward the first Libra Council meeting, to be held on Monday.

Each of the companies released statements on the matter echoing similar sentiments, generally espousing that while they are supportive of new ideas to improve commerce, they have chose to drop their initial support for Libra.

The Libra Association still has 21 members that have yet to leave (not including Facebook), but the fact that four companies have parted ways in just a week is anything but a good sign. Their initial agreement to join the Libra Association instantly gave Facebook's project legitimacy.

But both Visa and Mastercard made it clear from the onset that their interest in Libra was at least partly out of curiosity. Later this month, Chief Executive Officer Mark Zuckerberg is scheduled to appear before the House Financial Services Committee to answer even more questions about Libra.

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