Factbox: Facebook's Libra in trouble as firms jump ship


  • Tech News
  • Tuesday, 15 Oct 2019

A small toy figure stands on representations of virtual currency in front of the Libra logo in this illustration picture, June 21,2019. REUTERS/Dado Ruvic/Illustration

(Reuters) - A number of payment processors and fintech companies that joined Facebook Inc's digital currency project Libra with great fanfare earlier this year, have abandoned the project, dealing a blow to the social media giant's plans.

The move follows warnings from politicians and regulators around the world about the implications of creating a global digital currency and the threat it will pose to financial stability, undermining users' privacy and facilitating money laundering.

Following is a list of the companies and partners that have pulled out of the Libra project:

Paypal Holdings Inc: The U.S. payments processor was the first member to withdraw from the Libra Association on Oct. 4.

eBay Inc: The e-commerce firm said on Friday it would no longer be the founding member of the Libra association as it wants to focus on rolling out its managed payments experience for customers.

Visa Inc: A spokesperson said on Friday Visa will not join Libra at this time, but the final decision will be based on different factors including the association's ability to fully satisfy regulatory expectations.

Mastercard: Mastercard joined the list of companies to pull out of the agreement, and said on Friday it would not join the association, despite believing that there are potential benefits in financial inclusion initiatives.

Stripe Inc: A Stripe spokesperson confirmed on Friday it is exiting Libra. The fintech startup, added it will be following progress on Libra cryptocurrency closely, and will be open to working with the libra association at a later stage.

Mercado Pago: Mercado Pago, a Latin American payments company, has also dropped out of the project.

Booking Holdings Inc: The online travel agency will no longer be supporting Libra, CNBC tweeted on Monday. Booking Holdings did not immediately respond to Reuters' request for comment. – Reuters

Related stories:

Facebook's Libra faces support test after payment giants jump ship


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Libra , Digital currency , Facebook

   

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