Facebook is again "retired"! The Libra Association’s six payment industry members now have only one

According to The block, payment giants Mastercard, Visa, eBay, Stripe and Mercado Pago also announced their withdrawal from the Facebook Libra project following PayPal's “return”.

In response, a spokesperson for eBay said that eBay highly respects the Libra Association's vision, but eBay decided not to continue as a founding member. Currently, eBay is committed to providing eBay's managed payment experience to its customers;

A Visa spokesperson said that Visa has decided not to join the Libra Association and will continue to evaluate it;

A Mercado Pago spokesperson said that after the project was “clearer”, the company would re-evaluate Libra;

A Stripe spokesperson said that Stripe supports projects that make it easier for people around the world to use online commerce. The Libra Association has this potential. Stripe will pay close attention to its progress and continue to work with the Libra Association at a later stage.

Not long ago, two US Senate Democrats, Sherrod Brown and Brian Schatz, wrote to Mastercard, VISA and Stripe to rethink their cooperation with the Facebook Libra cryptocurrency project. Today, the news of the announcement of "retreat" came out.

It is worth noting that the exiting institutions are all payment giants except eBay, and PayPal, which was previously withdrawn, is also in the payment field. PayU is currently the only payment type company in the Libra Association and is headquartered in the Netherlands.

For the exit of the top five giants, David Marcus, head of the Facebook blockchain project, said on Twitter that in the short term, this is not good news. At the same time, Marcus expressed his understanding of the exit of Visa and Mastercard, and hinted that its withdrawal was due to the US government's supervision and Libra's possible business threats. According to the Financial Times, the reason for the withdrawal of eBay and Stripe is also from regulatory pressure.

Currently, the Libra project does face regulatory pressure from many countries around the world.

On the US side, on the 23rd of this month, Zuckerbock will attend the hearing of the US House Financial Services Committee. In July of this year, Marcus has participated in the Senate Hearings and the House Financial Services Committee hearings supported by the Senate Bank, Housing and Urban Affairs Committee. Trump has repeatedly criticized Facebook since he became president of the United States. For the Libra project, Trump said: Facebook will "have no status or reliability."

On October 5th, US, UK and Australian international law enforcement partners jointly issued an open letter to Facebook requesting Facebook to stop the end-to-end encryption program, urging the company not to move on without “ensure that user security is not affected”.

Europe, France, Germany and other countries as well as the European Central Bank and other institutions still stay in the "state of questioning" stage, but the news that the European Commission has intervened, asking Facebook to answer a series of questions about the Libra.

EU finance ministers will tell finance ministers at the G20 meeting in mid-October that they need a global regulatory response to “stabilized coins” such as Facebook's Libra. German Finance Minister Olaf Scholz said policymakers could not accept the emergence of parallel currencies such as Libra, which Facebook plans to launch.

In a petition on WeMove.EU that banned "Facebook funds," up to now, 81,019 signatures were obtained in the required 100,000 signatures. The petition was completed in cooperation with the NGO Financial Watch, calling for the entire European Union to unite against Facebook's release of Libra.

Bank of Japan Governor Haruhiko Kuroda said policymakers must ensure the highest level of regulation of stable currencies such as Libra. Switzerland, where Libra is based, also stated that Libra must undergo a Swiss money laundering review and can begin the approval process after receiving legal inquiries.

Many regulatory issues are one of the biggest difficulties that Facebook has to face now.

At the same time, Facebook is also faced with the “small troubles” that are constantly emerging.

The intricate relationship of the Libra Association has raised questions about Facebook's characterization of the association. The Libra Association is an organization similar to other non-profit organizations, with members increasing to 100 future plans. But among the first founding members of the 28 Libra Associations, many have close personal, professional, and investment relationships with Facebook and members, and these relationships even touch the organization's top leadership. Although these people may not be directly involved in the Libra project, the links between them indicate that the Libra Association may not be as “diversified and globalized” as Facebook claims.

CNN draws a Libra Association membership diagram that includes 11 executives, board members, founders, or personal friends of founding member companies.

In addition, according to the blockcrypto news, Facebook's Calibra is caught in a trademark (disputation) case. According to Finco Services, Inc., Calibra's swirling wavy logo is almost identical to its own logo and is illegal and destructive.

However, Facebook has not yet given up on the introduction of the digital currency Libra.

The taxi giant Uber, the taxi app Lyft and the cryptocurrency carrier Anchorage made it clear that they will continue to participate in the Libra project.

According to BBC correspondent Dave Lee on Twitter, Lyft told the BBC that it is full of hope for Facebook, which is still in the Libra Association. Uber indicated to CNBC that its current participation has not changed. Anchorage co-founder Diogo Monica told The Block earlier this week that he will continue to work on the Libra Association's mission and be proud to be a founding member.

In addition, the remaining 22 members of the Libra Association will hold their first Libra Council meeting in Geneva on October 14. During the meeting, they will determine that the parties play different roles and try to answer all governance issues not listed in the initial white paper. The meeting will generate a formal charter, and each member will sign the new agreement and formally join the association.

Facebook originally planned to launch the stable currency Libra next year. Nowadays, with the pressure of supervision and constant trouble, Libra's successful launch may have a big question mark, but Facebook has shown strong determination to launch Libra. Cous said on Twitter that there will be more news soon.

The more frustration, the more brave or the retreat? Everything is still unknown in the future.

Author: Joyce

Source: blockchain outpost