Visa, eBay, Stripe, and Mastercard drop out of Facebook’s Libra

Visa, eBay, Stripe, and, Mastercard have become the latest four official companies to depart from Facebook’s Libra stablecoin project, following PayPal, according to Bloomberg and Financial Times, Visa. 

“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.” a eBay spokesperson tells The Block. 

“Stripe is supportive of projects that aim to make online commerce more accessible for people around the world. Libra has this potential. We will follow its progress closely and remain open to working with the Libra Association at a later stage,” a Stripe spokesperson told Financial Times.

“Visa has decided not to join the Libra Association at this time.   We will continue to evaluate and our ultimate decision will be determined by a number of factors, including the Association’s ability to fully satisfy all requisite regulatory expectations,” said a Visa spokesperson.  

However, Visa still believes in the potential of blockchain to better the existing payments system. 

“Visa’s continued interest in Libra stems from our belief that well-regulated blockchain-based networks could extend the value of secure digital payments to a greater number of people and places, particularly in emerging and developing markets,” the Visa spokesperson added.  

The four firms’ decision to leaves comes a week after PayPal announced that it was also pulling out. The firms were four of the first 28 inaugural members of the Libra project.

Earlier this week, two senators, Sherrod Brown and Brian Schatz, sent out letters to Visa, Mastercard, and Stripe, asking them to reconsider their partnership with Libra. Now, all three companies have exited Libra, before a private governance meeting next Monday when members will sign their official charters to join the Libra Association. 

As The Block previously reported, according to Dante Disparte, Head of Policy and Communications of the Libra Association, 1,500 entities have “indicated enthusiastic interest to participate.”

Visa, eBay, Stripe, and Mastercard drop out of Facebook’s Libra written by Steven Zheng @ October 11, 2019 Steven Zheng

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