Facebook’s Libra cryptocurrency has been turned away by big financial companies

Facebook’s crypto project Libra is facing many difficulties when being turned away by big financial companies …

Facebook’s ambitious efforts to set up a global digital currency called Libra have suffered heavy setbacks, as major payment companies including Mastercard and Visa announced their departure from the project. judgment.

On June 11, Mastercard and Visa announced they would withdraw from the Libra project. In addition, EBay, Stripe and payment company Mercado Pago also withdrew from the project a week ago, when global managers continued to raise concerns about the project.

Currently, the remaining members of the Libra Association do not have any major payment companies. The remaining members of the Association, including Lyft and Vodafone, are primarily venture capitalists, telecommunications, technology companies and nonprofits.

In a recent statement, the Visa representative said: “Our company has decided not to join the Libra Association. We will continue to evaluate and our final decision will depend on a number of weaknesses. elements, including the Association’s ability to fully meet all necessary legal expectations. “

Acknowledging this, Facebook’s Libra project leader, Former PayPal CEO, David Marcus, wrote on Twitter protesting many people assessing the fate of the Libra currency over recent developments. Even so, he acknowledged, “that’s not good news in the short term.”

Meanwhile, Mr. Dante Disparte, Director of Policy and Communication Project Libra said in a statement that: “We are still looking forward and continue to build a strong Association comprising a number of leading businesses in the world, socially influential organizations and other stakeholders. “

Facebook’s Libra alliance will face many difficulties. Photo: Medium

Facebook announced plans to launch the digital currency in June 2020 in cooperation with many members of the Libra Association. But immediately, the project faced many oversight by global regulatory agencies. These agencies have launched a series of tough questions that the Association still has no answers.

Last month, France and Germany blocked the Libra Association from operating in Europe. And they also support the development of an alternative public cryptocurrency. Besides, Federal Reserve Chairman Jerome Powell also said that the project cannot be promoted without addressing privacy, money laundering, consumer protection and financial stability issues.

It can be said that the withdrawal of major financial companies on October 11 shows that they really paid attention to those concerns.

Three days earlier, two senior Democratic senators wrote to Visa, Mastercard and Stripe companies, urging them to be wary of a project that will enable global criminals to function. dynamic.

Facebook CEO Mark Zuckerberg is expected to present the project when he participates in a hearing before the House of Representatives Financial Services Committee on October 23. Photo source: AP

Two Senators, Mr. Sherrod Brown and Mr. Brian Schatz, wrote in the letter: “If you participate in this project, you may be subject to scrutiny from managers, not just for the payment activities related to Libra, which with all other activities “.

Currently, Facebook CEO Mark Zuckerberg is expected to present the project when he testifies before the House of Representatives Financial Services Committee on October 23.

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