Four Companies Jump Ship
In a dramatic turn of events, four heavyweights in the payment processing world—eBay, Stripe, Mastercard, and Visa—have thrown in the towel on Facebook’s ambitious Libra cryptocurrency project. As reported by Bloomberg on October 11th, eBay, Stripe, and Mastercard made the leap away from the Libra Association. Soon after, Visa decided it couldn’t stick around either, citing concerns that have been echoed throughout the industry.
Regulatory Scrutiny Sparks Concerns
This mass exodus comes just a week after PayPal announced its own departure from the Libra adventure, which suggests escalating concerns among regulators regarding the cryptocurrency’s rollout. The companies have been careful with their wording, expressing admiration for Facebook’s vision while choosing to split ways for now.
The Push and Pull of Potential
Stripe, in a surprising twist, initially denied intentions to back out, but later softened its stance, stating:
“Stripe is supportive of projects that aim to make online commerce more accessible for people around the world. Libra has this potential.”
They promised to keep their eyes glued to the project and hinted at a possible collaboration in the future. Meanwhile, Visa, Mastercard, and their peers have suggested that Facebook may be overselling its narrative around favorable regulatory relationships.
Coinbase’s CEO Weighs In
In the realm of crypto commentary, Coinbase CEO Brian Armstrong took to social media to express his thoughts on the government’s response to Libra. He noted a concerning trend where it feels like the U.S. may be falling behind in the global tech race, quipping that:
“The way the U.S. government reacted it’s like they almost want to be left behind.”
Innovation at Risk
Armstrong emphasized the necessity for countries to focus on science, technology, and innovation to maintain relevance in an ever-evolving landscape. His call to action? The government should focus on not stifling innovation, insisting, “If the government can help here, even better. But first it needs to do no harm.”
The Future of Libra
As these companies step back and reassess their positions, questions linger over the future of Libra. Can Facebook save this sinking ship, or has the recent wave of withdrawals signaled an unceremonious end to their grand plans for a digital currency? Time will tell.
