Major Payment Firms Abandon Facebook's Libra Project Amid Regulatory Pressure
Visa, Mastercard, eBay, and Stripe leave the Libra Association, stripping the digital currency project of all major payment partners. The organization plans to move forward with its charter despite the massive exodus.
Facebook's plan to launch a global digital currency called Libra suffers a major blow as several key payment companies exit the project. Visa, Mastercard, eBay, Stripe, and Mercado Pago all announce their departure from the Libra Association, following a similar move by PayPal just a week earlier. This mass exodus leaves the initiative without any remaining major payment processors to help facilitate consumer transactions.
The departing companies cite ongoing concerns from global regulators as a primary reason for their exit. Visa explicitly states that its ultimate decision depends on the association's ability to satisfy all requisite regulatory expectations. Lawmakers in Europe and the United States continue to scrutinize the project heavily, with France and Germany even pledging to block Libra from operating within their borders.
Despite these significant setbacks, the Libra Association intends to move forward and formally charter the organization in the coming days. Project leaders downplay the departures, noting that the makeup of the association naturally changes over time and emphasizing the resilience of the network's design. The remaining members consist primarily of technology companies, venture capital firms, and nonprofit groups rather than financial institutions.