Facebook’s Libra Cryptocurrency faced a pivotal meeting of backers on Monday as the project suffered a severe blow with the major payment firms abandoning it. Visa and MasterCard abandoned the Geneva-based Libra Association along with eBay, Fintech startup Stripe, and Mercado Pago.
Politicians and regulators from the U.S to Europe confirmed Libra risks upsetting global financial stability, risking users’ privacy, and facilitating money laundering. PayPal started exodus this month, leaving Facebook without any major payments firms backing it. This has raised questions over the due launch of Libra by June 2020.
Although Facebook committed giving details of 1,500 “entities” indicating “enthusiastic interest” to take part in the Libra project.
The remaining members include Uber and Lyft, Vodafone, few non-profit organizations, venture capital groups, and Blockchain firms. But, the departure of major financial firms presents a stumbling block for Libra’s efforts towards convincing regulators and politicians about the coin’s safety.