news Payments giants abandon Facebook's Libra cryptocurrency

[BaileyUK]

https://www.bbc.co.uk/news/technology-50023008

Mastercard, Visa, eBay and payments firm Stripe have pulled out of Facebook’s embattled cryptocurrency project, Libra.

Their move, first reported in the Financial Times, follows the withdrawal of PayPal, announced last week.

It represents a huge blow to the social network’s plans to launch what it envisions as a global currency.

The project has drawn heavy scrutiny from regulators and politicians, particularly in the US.

Facebook chief executive Mark Zuckerberg will appear before the House Committee on Financial Services on 23 October to discuss Libra and its planned roll-out.

Regulators have raised multiple concerns over Libra, including the risk it may be used for money laundering.

In a statement released on Friday, eBay said it “respected” the Libra project.

“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 spokesperson for Stripe said the firm supported the aim of making global payments easier.

"Libra has this potential. We will follow its progress closely and remain open to working with the Libra Association at a later stage.”

A spokesperson for Visa said: "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."

The Libra Association, set up by Facebook to manage the project, said of the departing companies: "We appreciate their support for the goals and mission of the Libra project.

"Although the makeup of the Association members may grow and change over time, the design principle of Libra's governance and technology, along with the open nature of this project ensures the Libra payment network will remain resilient.

"We look forward to the inaugural Libra Association Council meeting in just 3 days and announcing the initial members of the Libra Association.”

Last week, PayPal said it would no longer be part of the Libra Association, but did not rule out working on the project in future - prompting a strong reaction from the Association.

"Commitment to that mission is more important to us than anything else," it said in a statement. "We're better off knowing about this lack of commitment now."

 

[Samer]

It looks like, Facebook, just now, decided to jump-in cryptocurrency "bandwagon"?

I dont trust them, despite the fanfare imo.. (Sorry to all libra believers..)

I do believe in, future of cryptocurrency, however

 

[BaileyUK]

I agree Xabial.
None of the big boy payment systems want to find themselves defending a CrypoCurrency that they neither own outright or have full control over. The regulatory authorities are putting the wind up everybody. Best to wait and see (think they) than be seen as inaugural partners.

I can see the project going on hold for 3 to 5 years on what Mark Zukerburg may refer to as an 'extended-timeline' Interesting to read how he has soften his tone about the withdrawals, Alienating PayPal was one thing, He wouldn't dare criticize all the big financial institutions in the same tone

 

[ecomslice]

Tokens will be the future imo , tied to physical assets. then maybe some sort of Tether / Currency adjusted Crypto to rest in when not asset backed. but this is just my jibber jabber.

as for Libra , Tough call, they certainly wont be huge and main stream now.

 

[wwwweb]

These big players have a lot to lose via crypto, facebook has enough users, and channels to go in alone, and I hope they do. Someone needs to stand up to these monopolistic companies, old school payment systems just don't work in the new world economy. I really can't stand paypal, but 95% of namepros users depend on it, what can you do. Bitcoin staying at $10K for a while really got more people to hold, use, and trust it, but when it falls 30% in a month, it can make you edgy holding a large amount. I really believe in crypto, and blockchain, but these old world systems are going to fight it every step of the way. The make money with all the delays in the payment systems, via overdrafts, high interest, and service charges, it's pure gravy, and what will they do when payments move instantly.

 

[BaileyUK]

I agree with your sentiments wwwweb. But they were all onboard, So you can hardly say they were being 'Anti' It's the Financial regulators that have everybody ducking for cover not market protectionism.

I don't think the Facebook Association attack on Paypals withdrawal last week helped their cause. Nobody wants to be seen as part of some Big Bother ideology, however well meaning

 

[wwwweb]

Oh Let's not forget what these credit cards make on currency exchange, simply 2.5-3.5% surcharge just to process a charge in a foreign currency, and an inflated rate on top of that.

 

[Bob Hawkes]

Just wanted to say thank you for timely and important information, @BaileyUK I had not heard that PayPal had dropped out, and now with the major credit card companies gone seems dismal for Libra. I think ever since the privacy issues FB has found it harder to have partnerships.
Thanks again,
Bob
(Luckily I have 0 Libra domains to worry about!)