A week after PayPal left the Libra project, Facebook was forced to deal with more casualties. The cryptocurrency has lost support from Mastercard, Visa, eBay and Stripe, according to information published on Friday (11) by Reuters and The Verge.
With the changes, Libra has no partner in the area of payments. The companies made the decision days before the board responsible for the cryptocurrency held its first meeting, scheduled for next Monday (14).
According to the The Verge, the meeting should be used to sign more specific commitments, which may have contributed to the companies choosing to leave the project already. In a statement, Visa indicated that its departure is linked to regulatory issues.
“Visa decided not to join the Libra Association at the moment,” said the company. “We will continue to evaluate and our final decision will be determined by several factors, including the Association’s ability to fully meet all necessary regulatory expectations.”
EBay promises to focus on its projects. “We respect the vision of Associação Libra a lot. However, eBay made the decision not to move forward as a founding member. We are currently focused on implementing eBay’s managed payments experience for our customers. ”
Stripe said, in a note, that it supports projects that aim to make online commerce more accessible to all people. “Libra has that potential. We will monitor your progress closely and remain open to work with the Libra Association later on. ”
Mastercard did not issue an official position until the publication of this post. In a note, the Libra Association’s policy and communications director, Dante Disparte, thanked the support that the companies offered while participating in the development of the cryptocurrency.
“We are focused on moving forward and continuing to build a strong association with some of the world’s leading companies and social impact organizations. We wait for the inaugural meeting of the Libra Association Council in just three days and will announce the initial members of the Libra Association ”.
The information that Mastercard, Visa and other partners rethought support for Libra had already been released at the beginning of the month by Wall Street Journal. In August, the Financial Times indicated that two members were considering leaving the project.
Facebook intends to put Libra into action in 2020, but faces resistance from regulators. France, for example, wants cryptocurrency to be banned in the European Union, while the United States is calling for a halt to its launch.
Libra project even involves accusation of plagiarism
Libra will be regulated in Switzerland and run by the Libra Association, which now has 24 members (there were 28). One is Calibra, a Facebook subsidiary launched in June especially for the development of cryptocurrency.
As if the problems with regulators were not enough, Facebook also needs to deal with an accusation of plagiarism. The Calibra logo would have been made as a copy of the logo of Current, a banking startup founded in 2015.
Current questioned the similarity between the two brands in its Twitter profile and filed a lawsuit not only against Facebook, but also against the design agency Character. She would have created the two logos in three years.
It is still unclear how Character presented two almost identical brands, but the process may impose more difficulties on Facebook. Mark Zuckerberg’s company plans to offer the cryptocurrency on WhatsApp and Messenger, but it is expected to solve a number of problems first.