Four major companies dropped out of Facebook's Libra project today

L is for loser

eBay, Visa and Mastercard pull out of Facebook's Libra cryptocurrency

Now Visa, Mastercard, eBay, Stripe and Mercado Pago have also withdrawn from the Libra Association.

Payments giant Stripe, one of the most high-profile startups to sign onto the project, signaled it remained open to working on it in the future.

Libra, meanwhile, said it plans to soldier on.

The latest withdrawal from the project comes after several lawmakers sent a letter to Mastercard, eBay, Visa, and Stripe warning that the project may destabilise the global financial system.

With these withdrawals, Libra is left with no major United States payment processor.

"We highly respect the vision of the Libra Association; however, eBay has made the decision to not move forward as a founding member", eBay said in a statement to El Reg. On top of that, these announcements are coming out just a matter of days before Facebook holds its first meeting for the Libra Association on October 14.




Amid heavy regulatory scrutiny from governments around the world, Facebook's ambitious plans for Libra have begun to come apart at the seams. France and Germany have vowed to block Libra altogether.

What do you think about another set of companies leaving Libra? Be that as it may, the timing could not be more ideal.

Of all the payment processors that were part of the Libra Association, PayPal, Visa, and MasterCard were three of the most notable. With this process, the new members will each have a specific role to play in the Libra Association.

Earlier this week, two U.S. senators cautioned Visa, Mastercard and Stripe to reconsider their involvement in the project. The Libra Association declined to comment on the $10 million fees, but in a statement to FOX Business, Dante Disparte, head of policy and communication for the Libra Association said, "We appreciate their support for the goals and mission of the Libra project".

Even though it has lost major backers, Facebook is clearly not ready to give up yet. Facebook founder and CEO Mark Zuckerberg is scheduled to testify before the U.S. House Financial Services Committee on October 23. In July, David Marcus, Facebook's lead on the project, was grilled by skeptical USA lawmakers. Yet, this upcoming hearing will be his first appearance before Congress since previous year April.

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.

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