Mastercard, Visa, eBay, and Stripe have reportedly backed out of Facebook’s Cryptocurrency Project Libra. This news comes days after PayPal backed out of the project following scrutiny from regulators.
Facebook’s Libra project has not had an easy start when the project was announced back in June it was met with scrutiny. Facebook stated that the coin which was to debut in 2020 will integrate with Facebook services. Facebook also stated the asset would be used for online e-commerce transactions.
Facebook had several large bakers including Uber, Lyft, Spotify, Vodafone, Paypal, Mastercard, Visa, etc. However, as we now see many of those initial backers are withdrawing due to regulators. This isn’t a good sign for the currency as it has yet to launch and without a well developed and robust ecosystem it could end up like many other cryptos. Most of which have been relegated to being a means of investment instead of being used for real purchases.
Visa Inc., Mastercard Inc., Stripe Inc., and eBay Inc. said Friday they were withdrawing from the coalition of companies that had originally signed on to help launch the Libra cryptocurrency. The loss of four of the largest payments companies in the world leaves Facebook without much of the muscle it assembled for Libra. This leaves the project only effective for smaller payments, and need to signup with individual merchants.