After Paypal’s declaration of quitting the alliance with Facebook Libra coin last week. The digital currency alliance lost more companies on Friday, Oct 11. The Libra global cryptocurrency faced heavy criticisms from the regulators around the world. Due to some unavoidable risk factors, companies like PayPal can not put complete faith over the whole project right now. As a result, they came up with various opinions that resulted in similar conclusions. Although, The Libra Association did not immediately return a request for comment.
Out of 28 alliances, they are losing giant credit card companies like Visa and Mastercard. Online marketplace eBay and digital payments firm Stripe announced their decisions as well. All these companies refused to be the founding members of the Libra Association. And they disagreed to promote the digital currency.
But Why?
By an emailed statement, Mastercard said that they have decided it will not become a member of the Facebook Libra Association at present.
In the same vein, Visa offered a similar statement to drop out of the alliance. However, they might re-join in Facebook Libra coin alliance in the future. To clarify, the company announced that they will remain focused on its strategy. And its significant efforts to enable financial inclusion around the world. They believe there are potential benefits. As a result, they will continue to monitor and evaluate the Libra effort.” They also added they will determine the ultimate decision by a number of factors. That includes the association’s ability to fully satisfy all required regulatory expectations.
Read More: PayPal Exits Facebook’s Libra Association
Similarly, eBay has made the decision to not move forward as a founding member of the Facebook Libra coin. The Silicon Valley-based company announced its decision showing proper respect to the association.
Meanwhile, according to Stripe, the company will follow the track of the progress of Libra. And they will remain open to working with the association later.
Stripe supports projects that make online commerce more accessible to people around the world. And according to them, Libra has this potential. The moves come after US senators sent letters to several financial firms. This assures “a high level of scrutiny from regulators” in the new currency plan.
Facebook executives claimed the Libra coin costs less for global money transfers. and help those without access to the banking system.
The French economy and finance minister Bruno Le Maire has warned about a threat to the “monetary sovereignty” of governments. So, Europe should not authorize this.
What Now?
Mark Zuckerberg is set to testify the project on October 23. It will be hearing in the US House of Representatives on the Libra plan. Rest? Let’s wait and watch!
