All major players including Visa, EBay, MasterCard drop out of FB’s Libra

After a week of PayPal leaving the Facebook’s Libra association, other major members like EBay, MasterCard, Visa and stripes have also abandoned the project. The companies that have chosen to fall out have given similar statements when asked about it. All of them have said that they support the project but will start being involved actively after further analysis.

Libra group started with 28 corporate backers for the project but as lawmakers are interfering with the project over its security and privacy concern, companies have started to back out. Now, Libra association just has 2 payment gateway providers left, Mercadopago and PayU. The original supporter of Libra, Uber and Lyft have told media that they do not intend to back out as of now and will continue to stand behind Facebook for this project.

Ever since PayPal dropped out; EBay, MasterCard and Stripe also followed their footstep and dropped out followed by one another in quick succession. This indicates that all these companies have been thinking of dropping out from around the same time and most likely they have discussed this plan with each other before finally announcing it.

This news comes just a few days earlier to a Libra association meeting which will be followed by Mark Zuckerberg’s testimony in front of the law makers after a week.

The head of the Libra project and former PayPal president David Marcus has testified in front of the committee back in July. He was asked that whether or not Mark Zuckerberg will put a hold on the project until important regulations are devised and implemented. According to the head of the committee, Maxin Waters the answer given by him does not qualify as a commitment.

The Non-profit organization, Libra still wants to continue going forward with the project, even after so many members breaking off.

About: Akash Gokhe