EBay and Stripe leave Facebook led digital currency Libra

EBay and Stripe leave Facebook led digital currency Libra

In addition to PayPal, eBay, and Stripe, it was reported on Friday afternoon that three more partners, Mastercard, Visa, and Mercado Pago, have also pulled their support from the project, casting Libra into further peril. Their initial agreement to join the Libra Association instantly gave Facebook's project legitimacy. PayPal Holdings Inc. dropped out last week.

Libra Association confirmed that the companies would no longer be founding members, but said that it would continue building an alliance of businesses, social-good organizations, and others to implement the cryptocurrency.

Each of the companies released statements on the matter echoing similar sentiments, generally espousing that while they are supportive of new ideas to improve commerce, they have made a decision to drop their initial support for Libra.

Libra will press ahead with plans to formally charter the association, Dante Disparte, its head of policy and communication, said in a statement on Friday. Stripe will "remain open to working with the Libra Association at a later stage", the spokesperson said.

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Chairwoman of the committee sent a letter to Facebook requesting an immediate moratorium on the implementation of Facebook's proposed cryptocurrency, Libra, and digital wallet, Calibra. Nearly immediately afterwards, the project faced relentless scrutiny from global regulators, who said it raised a host of serious questions that the group had yet to answer. France and Germany have vowed to block Libra altogether. Politicians on both sides of the spectrum have questioned the privacy issues raised with Facebook controlling a currency, as well as concerns about money laundering.

The decision by eBay, Stripe, and Mastercard comes just a week after PayPal's departure from the project. The cryptocurrency would be run out of Geneva by the organizations that comprised the Libra Association, not exclusively by Facebook.

Just this week, US Senators Brian Schatz of Hawaii and Sherrod Brown of OH sent letters to the CEOs of Visa, Stripe, and Mastercard expressing "deep concerns" about Libra and warning them that their companies could face stricter regulatory scrutiny because of their involvement in the project. U.S. Representative Maxine Waters, who chairs the panel, has repeatedly called on Facebook to shelve the project.

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