Last week, PayPal had already left the Libra Association
Facebook’s efforts to create a global digital currency suffered major losses today (11), after eBay, Mastercard, Visa and other companies decided to abandon the project.
The companies joined PayPal, which left the Libra Association last week, amid continued criticism from global regulators over potential risks to the global financial system. “Visa has decided not to join the Libra Association at this time,” the company said in a statement. “We continue to evaluate the project and our final decision will be determined by a number of factors, including the Association’s ability to fully satisfy all regulatory requirements.” The new lows in the association can be problematic for the project, since they include all the biggest payment means companies that were founding members of the entity. Facebook has announced plans to launch the Libra digital currency in June 2020 in partnership with the other members of the association.
The Libra Association will go ahead with the plans, said Dante Disparte, the entity’s communication director, this Friday. “We will proceed with the launch meeting of the Libra Association Council in the next three days and announcement of the initial members of the entity.”
Facebook Chief Executive Mark Zuckerberg is expected to discuss the digital currency project when he attends a hearing before the Financial Services Committee of the US House of Representatives on Oct. France and Germany said last month that they would ban Libra in Europe and support the development of a public cryptocurrency. Meanwhile, Federal Reserve Chairman Jerome Powell has cited serious concerns about money laundering, consumer protection and financial stability that need to be addressed before the pound project moves forward.