Payment giants such as Mastercard, eBay, Visa, and Stripes have pulled their names out from the embattlement of Facebook’s cryptocurrency Libra earlier this year. Recently, another payment behemoth, PayPal has also withdrawn its name from the supporter list for the upcoming cryptocurrency. This came as a shock to the social media giant. This is because the company was planning to launch Libra as a global currency. However, now Mark Zuckerberg has to appear before the House Committee on Financial Services to discuss Libra’s tentative roll-out.
How did the Pull-outs Began?
The first report of pull-out published in the Financial Times, after which PayPal made its move. The withdrawals were accompanied by several concerns including the potential risk of Libra being used in money laundering. This has drawn heavy scrutiny for the Libra project resulting in which the CEO of Facebook has to appear in the hearing.
The withdrawals include six major players dealing in payment transfer business including Mastercard and PayPal. Apart from these six companies, only PayU remains as the founding member of the Libra project.
As per eBay’s statement, it respects the vision of the project but, restricts itself from being the founding member. Currently, the company will emphasis on eBay managed payment services providing a better shopping experience to its customers.
In another statement released by Stripe states that it supported Libra’s aim of making payment easier. The company states that Libra has plenty of potentials and will keep on monitoring its progress over the period of time. Whereas, Visa says that it shall evaluate the Libra’s potential and final decision will depend on various factors including Libra Association’s capability to fulfill all regulatory expectations.