Facebook’s Libra currency is trying and failing, or at least getting into trouble. The company is facing challenges just to bring the currency work while juggling ethical issues.
The public PayPal exit set off a series of events and reports reveal more companies are leaving the association. Mastercard, Visa and Stripe also made an exit in a latest report and this is due to the same reason PayPal exited the Libra Association.
“Visa has decided not to join the Libra Association at this time,” a Visa spokesperson said to The Verge. “We will continue to evaluate and our ultimate decision will be determined by a number of factors, including the Association’s ability to fully satisfy all requisite regulatory expectations.”
What this means is a burning of a bridge Facebook wanted to realize with a US-based payments processor. These companies have the processing power in the payments space. They are leaders in making payments and many people rely on them for making fast, secure payments. What this means for Facebook is that people will find it hard to see the legitimacy of the project. It is just another cryptocurrrency that could just fall through like the others.
Representatives of said companies came out in support of the project, however, but have voiced how they made the decision not to move forward as founding members.
This comes at the heel of the Association having a meeting in three days.
“We are focused on moving forward and continuing to build a strong association of some of the world’s leading enterprises, social impact organizations and other stakeholders,” Dante Disparte, Libra Association Policy Chief, said.
The members who have chosen to stay in the association are reportedly facing more challenges from governments and regulators over the currency. The main concern they have is that the currency to disrupt current financial systems.