Facebook’s libra cryptocurrency coalition is falling apart as eBay, Visa, Mastercard and Stripe jump ship - ok now this is epic

BarberFerdinand

True & Honest Fan
kiwifarms.net

KEY POINTS
  • EBay, Visa, Mastercard and Stripe announced Friday they will no longer be part of Facebook’s libra cryptocurrency project.
  • The news comes one week after PayPal announced its withdrawal as government regulators continue to scrutinize the plans.
  • Facebook CEO Mark Zuckerberg is set to testify on the currency at an Oct. 23 hearing before the House Financial Services Committee.

EBay, Stripe, Mastercard and Visa are all dropping out of Facebook’s libra cryptocurrency project, the companies announced Friday. The news comes one week after PayPal announced its withdrawal as government regulators continue to scrutinize the plans.
In statements following the news, the companies said they respect and see potential in the project, but have chosen to focus on other efforts. A Stripe spokesperson said in a statement that the company “is supportive of projects that aim to make online commerce more accessible for people around the world.” Stripe will “remain open to working with the Libra Association at a later stage,” the spokesperson said.

A Visa spokesperson said the company “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. Visa’s continued interest in Libra stems from our belief that well-regulated blockchain-based networks could extend the value of secure digital payments to a greater number of people and places, particularly in emerging and developing markets.”
The original coalition of 28 corporate backers of the libra cryptocurrency seems to be dwindling as lawmakers continue to question how it will impact sovereign currencies and how the project’s leaders can ensure consumers’ protection. Mercadopago and PayU are now the only two payments companies continuing to back the cryptocurrency as of Friday afternoon. Original backers Uber and Lyft told CNBC there has been no change to their involvement in the project.
The backers abandoning the project may have found safety in numbers after PayPal announced its exit last week. News that eBay, Stripe and Mastercard were each dropping out quickly followed one another Friday afternoon, indicating all three had likely been thinking about leaving during the same period. The decisions come ahead of a planned Libra Association Council meeting on Oct. 14. A week later, libra’s cryptocurrency project will take center stage in front of U.S. lawmakers once again when Facebook CEO Mark Zuckerberg testifies in front of the House Financial Services Committee later this month.
David Marcus, who leads the libra project and was previously the president of PayPal, weighed in on Twitter hours after the announcements. He cautioned “against reading the fate of Libra into this update.”


David Marcus

✔@davidmarcus

· 6h

Special thanks to @Visa and @Mastercard for sticking it out until the 11th hour. The pressure has been intense (understatement), and I respect their decision to wait until there’s regulatory clarity for @Libra_ to proceed, vs. the invoked threats (by many) on their biz.

David Marcus

✔@davidmarcus


I would caution against reading the fate of Libra into this update. Of course, it’s not great news in the short term, but in a way it’s liberating. Stay tuned for more very soon. Change of this magnitude is hard. You know you’re on to something when so much pressure builds up.

262

4:51 PM - Oct 11, 2019
Twitter Ads info and privacy

97 people are talking about this






Marcus testified before the committee in July. At the time, representatives including Chairwoman Maxine Waters, D-Calif., had asked Marcus whether Facebook would postpone its plans until the necessary regulations were in place. Marcus did not give an affirmative answer, according to Waters’ judgement. She said his answer “was not a commitment.”
The Libra Association, the nonprofit in charge of managing the cryptocurrency, said Friday afternoon it is still looking to move forward.
In a statement, policy and communication head Dante Disparte said, “We are focused on moving forward and continuing to build a strong association of some of the world’s leading enterprises, social impact organizations and other stakeholders to achieve a safe, transparent, and consumer-friendly implementation of a global payment system that breaks down financial barriers for billions of people. We look forward to the inaugural Libra Association Council meeting in just 3 days and announcing the initial members of the Libra Association.”
Facebook declined to comment.
 

Ahriman

Vivere Militare Est.
kiwifarms.net
Source/s:



1570856608980.png


Visa, Mastercard, eBay, Stripe, and Mercado Pago have all withdrawn from the Libra Association, dealing a major blow to Facebook’s plans for a distributed, global cryptocurrency. The withdrawals were first reported by the Financial Times and Bloomberg.

A Visa spokesperson told The Verge. “Visa has decided not to join the Libra Association at this time,” the spokesperson said. “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.”

The withdrawals leave Libra with no major US payment processor, a serious issue for the fledgling project. They also come just one week after PayPal (eBay’s former subsidiary) withdrew from the association.

The first official meeting of the Libra Council is in just three days, scheduled for October 14th in Geneva. That meeting will likely result in more specific commitments from all the members involved, which may have inspired some of the recent defections. Still, the departures leave the project in a precarious place as Libra hopes to move beyond initial criticisms of the project.

“We highly respect the vision of the Libra Association,” eBay said in a statement. “However, eBay has made the decision to not move forward as a founding member. At this time, we are focused on rolling out eBay’s managed payments experience for our customers.”

Stripe gave a similar explanation for its withdrawal. “Stripe is supportive of projects that aim to make online commerce more accessible for people around the world,” the company said. “Libra has this potential. We will follow its progress closely and remain open to working with the Libra Association at a later stage.” Mastercard did not immediately respond to a request for comment.

In response, Libra Association policy chief Dante Disparte thanked the companies for their ongoing support of the organization’s mission.

“We are focused on moving forward and continuing to build a strong association of some of the world’s leading enterprises, social impact organizations and other stakeholders,” Disparte said. “We look forward to the inaugural Libra Association Council meeting in just 3 days and announcing the initial members of the Libra Association.”

The remaining Libra members are facing growing pressure from governments and regulators, many of whom see the project as a threat to the existing financial system. On Wednesday, two Democratic senators urged Visa, Mastercard, and Stripe to reconsider their involvement with Libra, saying it could have significant regulatory consequences for any payment processor involved.

“If you take this on,” the letters read, “you can expect a high level of scrutiny from regulators not only on Libra-related activities, but on all payment activities.”

In response to the news, Libra chief David Marcus, a former president of former Libra Association, PayPal, conceded the news was not “great in the short term,” but “liberating” to “know that you’re on to something when so much pressure builds up.” Marcus also casts the news of Mastercard and Visa’s withdrawal from the project as the two payment giants simply waiting until there’s proper “regulatory clarity” on Libra.

1570856734428.png



---

Definitely good news.
 

Belligerent Monk

The Hard R Superstar
kiwifarms.net
I assumed there was something going on in the background when Sony pulled facebook integration from the PS4 this week. It seems like such a harmless, mundane, feature.

Maybe Sony knows something we don't. Is facebook getting myspace'd by another upcoming platform? Perhaps massive legal trouble down the pipeline?
 

Immortal Technique

©™
kiwifarms.net
I assumed there was something going on in the background when Sony pulled facebook integration from the PS4 this week. It seems like such a harmless, mundane, feature.

Maybe Sony knows something we don't. Is facebook getting myspace'd by another upcoming platform? Perhaps massive legal trouble down the pipeline?
I think Facebook is already myspace'd. It's still make money off all the data it's collected, but it's already faded with the younger generations in the US.
 

3119967d0c

a... brain - @StarkRavingMad
True & Honest Fan
kiwifarms.net
Excellent. Some crypto advocates were cautiously optimistic about Libra providing a pathway to crypto adoption by the masses, but A) they were probably delusional B) it isn't any good for what crypto's actually good for, which is buying weapons anonymously and supporting political and military groups which Occupational Governments try to sanction.

People are already careless enough about using unsafe cryptocurrencies (everything but Monero) which they buy from exchanges and don't tumble or otherwise mix. The last thing the crypto community needs is explictly unsafe shit like Libra in the mix as well.
 
I think Facebook is already myspace'd. It's still make money off all the data it's collected, but it's already faded with the younger generations in the US.
It's been pretty obvious from the start what the game plan was with Libra.

  1. Create a form of e-currency exchange that can be pushed through because of lobbying power and donations to key figures in government, in order to create a form of exchange that will crush any potential crypto market from ever becoming mainstream.
  2. Create market accessibility by having strong partnerships in the financial world with all of the major big players in terms of payment processing, something crypto has never been successful at doing, and thereby opening up a global market with their finger on the button of the exchange, instead of the bank. (China and Chinese exchange market, plain and simple.)
  3. Create it so that it is useable with all major platforms, including Facebook in an attempt to create global growth for Facebook, since it's reached saturation and decline point in most western countries and the US.
  4. Track the financial spending of Libra holders at points of sale, and then offer that up with other additional bits of information to firms interested in the spending habits of the said user. IE targeted advertising.
TLDR; Don't buy into it, it's a way for Zucc to allow dirty Chinese money to be laundered out and get paid for the privilege. All the while tracking you, your spending habits, and selling that info to the highest bidders.
 
Tags
None