Facebook's planned launch for a new cryptocurrency appears to be in trouble. A number of the companies that were initially part of the Libra project have jumped ship.
Major Payment Companies Leave Facebook's Libra Association
Visa, Mastercard, eBay, Stripe, and Mercado Pago have already broken away from the Libra Association.
A Stripe spokesperson said it is open to working with the Libra Association at a later stage, but for now will only be following its progress closely.
In a statement, Visa said it has decided not to join the Libra Association at this time, but it will continue to evaluate, and will consider a number of factors, including the Association's ability to fully satisfy all requisite regulatory expectations to determine its ultimate decision.
The recent exodus of major payment companies that followed PayPal's departure from Facebook's cryptocurrency project, leaves the association with no major payments companies as members.
This means that it can no longer rely on a global player to help consumers turn their currency into Libra and facilitate transactions.
Prior to Stripe, Mastercard, and Visa leaving the association, senators Sherrod Brown and Brian Schatz advised them to be wary of a project that would fuel the growth of global criminal activity.
The remaining members are primarily consist of venture capital, telecommunications, blockchain and technology companies, and nonprofit groups.
Many of the remaining members face growing pressure from government and regulators who think the project threatens the existing financial system.
Facebook To Push Through With Chartering Libra Association
Despite this setback, Libra's head of policy and communication Dante Disparte said in a statement that Libra will push through with plans to formally charter the association.
"The makeup of the Association members may grow and change over time, the design principle of Libra's governance and technology, along with the open nature of this project ensures the Libra payment network will remain resilient," he said, as quoted by Reuters.