Stripe, eBay, Mastercard and Visa quit Facebooks Libra


"Libra has this potential We will follow its progress closely and remain open to working with the Libra Association at a later stage". Another eBay spokesperson noted that the firm would rather focus on its own payments experience for now.

United States lawmakers have attacked Facebook on its Libra project, calling it "delusional" and "dangerous".

In a tweet, the head of Calibra David Marcus thanked Visa and MasterCard for enduring until "the 11th hour", speaking of the regulatory heat that made them exit.

Today, PayPal was joined by eBay and Stripe, as well as Mastercard and Visa, in dropping out of the ambitious crypto project, which would create a stable digital currency for frictionless online payments built directly into Facebook apps and services.

The Libra Association still has 21 members that have yet to leave (not including Facebook), but the fact that four companies have parted ways in just a week is anything but a good sign.

These announcements happen just days after news spread that regulators were interested in meeting with Facebook CEO Mark Zuckerberg to talk about Libra and discuss the Association's motives, as BeInCrypto previously reported.

The rapid succession of exits by major financial companies Friday afternoon suggested that scrutiny was taking its toll.

The idea of a Facebook-lead cryptocurrency raised a lot of eyebrows when it was first announced in June, though support from a laundry list of well-established companies gave it a feeling of legitimacy it would have otherwise lacked.

France and Germany last month pledged to block Libra from operating in Europe and backed the development of a public cryptocurrency instead.

What do you think about another set of companies leaving Libra?

It's additionally worth calling attention to the fact that United States senators, Brian Schatz (D - Hawaii) and Sherrod Brown (D - Ohio) sent a similar letter to the CEOs of MasterCard, Visa, and Stripe, asking them to reconsider their support for Libra project. In July, David Marcus, Facebook's lead on the project, was grilled by skeptical United States lawmakers.

This string of news comes only days after Mark Zuckerberg announced he would appear before the House Financial Services Committee on October 23 at 10 a.m. ET. Mercadopago and PayU are now the only two payments companies continuing to back Facebook's digital cash.

The remaining association members, including Lyft and Vodafone, consist mainly of venture capital, telecommunications, blockchain and technology companies, as well as nonprofit groups.