Home sci-tech More firms quit Facebook’s proposed Libra global digital currency group

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More firms quit Facebook’s proposed Libra global digital currency group

by ace
PARIS, FRANCE - JUNE 24: In this photo illustration, a visual representation of a digital cryptocurrency coin sits on display in front of Libra and Facebook logos on June 24, 2019 in Paris, France. Since the announcement of its creation a few days ago, the virtual currency of Facebook Libra fascinates as much as it worries. Thus, a few days after the announcement of the arrival of the social network in the sector, the Bank for International Settlements (BIS) considers that the incursion of major

Facebook's proposed global digital currency suffered a setback following the withdrawal of major payment companies such as Mastercard, Visa and eBay.

Stripe and Latin American payments company Mercado Pago also announced they were leaving.

Visa confirmed that they have given up, adding: "We will continue to evaluate and our final decision will be determined by a number of factors, including the association's ability to fully meet all required regulatory expectations."

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US payment processing company PayPal has left Libra

This is only a few days after the PayPal payment processing company leaves in the US.

Facebook project boss David Marcus said people should not be "reading Libra's fate in this update," although he admitted that "it's not good news in the short term."

The Libra Association now has no major payment companies as members, which means it cannot count on a global player to help people turn their currency into Pounds and facilitate transactions.

The remaining members are mainly venture capital, telecommunications, blockchain and technology companies.

But Libra will continue, according to Dante Disparte, its head of politics and communication.

He said: "We are focused on moving forward and continuing to build a strong association of some of the world's leading companies, social impact organizations and other stakeholders.

"While the membership of the Association may grow and change over time, Libra's governance and technology design principle, coupled with the open nature of this project, ensures that the Libra payment network remains resilient."

Facebook announced in June that it was establishing the group with the aim of launching the digital currency in June 2020, but quickly came across regulatory issues.

France and Germany pledged to prevent Libra from operating in Europe and instead supported the development of a public cryptocurrency.

In its announcement, Facebook said it wanted to allow people to make currency payments through their own apps, as well as on the WhatsApp messaging service, while partner companies could also accept Libra for transactions.

Paying, he said, would be as easy as sending text messages.

But concerns have grown about how money and people's data will be protected, as well as the potential volatility of the currency.

Facebook chief executive Mark Zuckerberg should discuss the bill when testifying before the US House
financial services committee on October 23.

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