The four key members who participated in the Libra Association – the stablecoin project initiated by Facebook – Visa, EBay, Stripe and Mastercard have all announced that they will leave this project.
Not enough trust in Libra?
On October 11, the Financial Times reported that Ebay, Stripe and Mastercard decided to abandon Facebook’s cryptocurrency project Libra. Almost immediately afterwards, Visa said it had also decided not to join the Libra Association, according to information from The Block.
This news comes a week after the PayPal company announced its withdrawal from the Libra stablecoin project under pressure from legal authorities.
The great allies leaving Facebook is made worse by the first official meeting of the Libra association that will take place in the next 3 days, scheduled for October 14 in Geneva. This meeting may be aimed at binding the association’s members to the project with more specific commitments, which may be the reason why many companies withdrew from Facebook’s ambitious project. However, even when deciding to go their separate ways, Libra’s partners still hope this project will go beyond criticism and further development in the future.
There are sources who claim that Visa, Mastercard and Stripe are trying to ensure that Facebook’s cryptocurrency project does not adversely affect their relationship with regulators. Three payment giants hinted that Facebook was overconfident when claiming that regulators would be comfortable with the Libra project. Stripe initially denied giving up Libra, but soon after, they officially spoke out about the project:
Stripe supports projects aimed at making online commerce more accessible to people around the world. Libra is such a potential project. We will follow its progress closely and remain ready to cooperate with the Libra Association at a later stage.
Coinbase’s CEO still defends Libra
Brian Armstrong, CEO and co-founder of cryptocurrency exchange Coinbase, recently said that he believes the way the US government responds is like they are lagging behind in this technological race.
He also emphasized his concern that the United States may become obsolete by maintaining a conservative attitude with new technologies like today:
The only way for countries to develop in the long term and continue to achieve high-speed economic growth is to invest in science, technology and new inventions. It is the government’s job to help and facilitate if possible, otherwise at least don’t hinder this trend.