Facebook’s new project, Libra, has lost 5 members since the announcement of its launch in June.
It is increasingly uphill for Facebook to conduct its crypto-project and develop its digital coin, Libra. Last October 11th, four large companies which supported Libra, decided to conclude their participation. Visa, Stripe, eBay and MasterCard announced their exit from the Libra initiative, which suffered severe setbacks.
These companies commented that they will take care of their new business models, as well as innovative projects for their financial systems.
Although the companies announced their exit from the initiative of Facebook, they claim that the Libra project is a tool that has a lot of potential and can be a very powerful asset at some point.
Representatives of some companies talked about their reasons to leave the project. They argued that it is mainly due to the strong regulatory and investigative measures of the United States government, as well as other entities which disagree with the Libra project.
Among the impressions of the companies, Visa, for example, decided to leave the project due to the regulatory controls that the US government prepares for this cryptocurrency. This was declared by an executive of the payment company, through an interview with local media.
The Visa worker said that although they are outside the project, they would not hesitate to return to it when conditions are more favorable. This is especially due to the actions against the launch of Libra.
“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”, he argued.
Finally, Visa emphasized how important the use of this technology can be, and noted that if this technology is suitable for an excellent legal framework, it could facilitate and improve digital payment platforms using a blockchain network that supports them.
In the same way, MasterCard said that they are designing and focusing their forces on projects to facilitate the financial life of people around the world. In addition, in a statement it said that Libra movements will be closely evaluated.
The other companies also issued their respective statements regarding their exit from the Libra project. Stripe preferred to say that joining was a boost. They prefer to stay out and evaluate the growth of the cryptocurrency. On the other hand, eBay said that at the moment they are preparing a new tool to manage their customers’ payments and improve their experience.
In recent weeks the Libra project has had significant falls since not only the withdrawal of these four companies has caused great damage. Previously, PayPal also announced its exit from Facebook’s project.
The association would have 23 members of the 28 that were announced when, last June, the development of the digital currency was announced.
The latest exodus leaves the Libra Association without any remaining major payments companies as members. This way, it can no longer count on a global player to help consumers to convert their currency into Libra to facilitate transactions.
By María Rodríguez