Just last week we reported that Facebook’s Libra project was starting to see some major resistance, with criticism from tech giants and one of the Libra Association founders, PayPal, pulling out completely from the project. It has become clear that the exodus from the Libra Association isn’t done, with several other major players exiting the association all at once.
The story broke through the Financial Times, and in a matter of days major companies that had wanted to be part of the Libra Association at its inception has decided to pull out. This includes Mastercard, Visa, eBay, Stripe and Mercado Pago – their withdrawal has dealt a major blow to Facebook’s ambitions to build a global cryptocurrency.
A Visa spokesperson noted that “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.”
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On October 14th the first official meeting of the Libra Association will take place, where all the members will be making more specific commitment in terms of what their roles will be and how the project will be run. Many believe that the major withdrawals come as a result of criticisms about corporate interest and greed, with Apple CEO Tim Cook calling it a “power grab,” for example.
This latest round of withdrawals leaves the project in a strange position and the remaining members would also be reassessing their involvement at this point.
Another reason for the withdrawal is as a result of pressure mounting from governments around the world, with regulation and more intense scrutiny looming.
The coming meeting of the Libra Association will be fascinating – don’t be surprised if we see several more withdrawals afterwards.
