On Friday Bloomberg reported that five more firms have withdrawn from Facebook’s Libra stablecoin project. The digital currency abandonments include Mastercard, Visa, eBay, Stripe and Argentinian online payments company Mercado Pago. The floodgates were started by Paypal’s withdrawal announcement a week earlier.
Before the Paypal revelation, it was rumored that the firm was concerned about increased regulatory scrutiny into its core payments business. Likewise, four out of five of the latest withdrawals are payments firms.
Numerous regulators around the world have voiced concerns about Facebook’s involvement in a payment instrument that could reach billions of users. Without the participation and moderating influence of high profile regulated payment providers, the risk of Facebook’s participation in the project could be perceived as even greater.
The withdrawals are being triggered ahead of today’s planned Libra meeting in Geneva at which members will be asked to sign a charter agreement. The Libra Association is registered in Switzerland. It involves a new blockchain technology project which to date has been mainly developed by the Facebook team.
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