Facebook Is Under Pressure: PayPal, Visa, eBay, Mastercard, And Stripe Abandon Libra Project
It’s been revealed that PayPal dropped support for Facebook’s project Libra.
PayPal seems to have grown concerned about the backlash against the digital asset Libra but it’s also worth noting that the company did not cite any specific reason for the fact that it dropped support for this project.
More entities left the Libra Association
More than that, eBay, Stripe, Visa, and Mastercard have all done the very same thing. They revealed that they are leaving Facebook’s Libra Association.
Facebook’s head of blockchain development David Marcus noted that the tech giant’s corporate members weighed the effects of sticking to this extremely controversial project.
In the beginning, Libra received a lot of praise, and the project was surrounded by excitement, and then, the controversy became deeper.
Brad Garlinghouse said that Facebook drew all this upon itself, and this is why there are regulation-issues these days.
Special thanks to @Visa and @Mastercard for sticking it out until the 11th hour. The pressure has been intense (understatement), and I respect their decision to wait until there’s regulatory clarity for @Libra_ to proceed, vs. the invoked threats (by many) on their biz.
— David Marcus (@davidmarcus) October 11, 2019
More and more concerns grow around Libra
In statements shared with the Financial Times, an eBay representative stated the following:
“We highly respect the vision of the Libra Association; however, eBay has made the decision to not move forward as a founding member. At this time, we are focused on rolling out eBay’s managed payments experience for our customers.”
On October 8, Senators Sherrod Schatz and Brian Brown issued ominous letters to the CEOs of Visa, Mastercard, and Stripe noting that Libra’s issues could become their own.
“Facebook appears to want the benefits of engaging in financial activities without the responsibility of being regulated as a financial services company.”
More than that, it’s been said that “You should be concerned that any weaknesses in Facebook’s risk management systems will become weaknesses in your systems that you may not be able to effectively mitigate.”
On the other hand, not everyone sees Libra as a dangerous project.
For instance, The French billionaire Xavier Niel said that Facebook-led stablecoin Libra would exist together with thousands of other cryptos.
Garlinghouse is both the CEO and Chairman of Ripple Labs. This year, Ripple surpassed 300 partners, including over 115 banks worldwide. Having launched On-Demand Liquidity (ODL) for cross-border payments, Ripple now has more than 20 partners using XRP for ODL, including Moneygram, Western Union, and American Express.
Former president of PayPal, Marcus has sat in Coinbase’s Board of Directors since 2017 and was previously fulfilling the role of VP of Messaging Products at Facebook. Marcus now heads up Facebook’s Libra team - which could potentially introduce digital currencies to Facebook's billions of active users.
Andreas Townsend Author
I am a technical writer, author and blogger since 2005. An industry watcher that stays on top of the latest features, extremely passionate about finance news and everything related to crypto.