Payment giants withdraw from Facebook’s Libra cryptocurrency project

Mastercard, Visa, eBay and payments firm Stripe have pulled out of Facebook’s cryptocurrency project, Libra. The latest withdrawal comes after PayPal decided to withdraw last week.

The withdrawal is a huge blow to the social network’s plans to launch its very own global currency.

The project has drawn severe criticism and scrutiny from regulators and politicians, mostly from the U.S.

Facebook chief executive Mark Zuckerberg will appear before the House Committee on Financial Services on 23 October to discuss Libra and its planned roll-out.

Regulators have raised multiple concerns over Libra, including the risk it may be used for money laundering.

Mercado Pago, a payments firm serving mostly Latin America, also pulled out. In all six firms have pulled out of the project, however payment form PayU remains undecided.

Facebook’s executive in charge of its Libra effort wrote on Twitter that losing the firms was “liberating”.

The Libra Association, was set up by Facebook to manage the project.

Firms that have opted out of Facebook’s ambitious cryptocurrency project may have ruled out supporting Libra now, but have not ruled out working on the project in future.