Facebook lost another partner in the development of its cryptocurrency. After the five casualties started with PayPal, it was Mercado Pago’s turn to leave Associação Libra, the group created to launch the blockchain-based digital currency.
The information, confirmed by Reutersand Financial Times, signals Facebook’s difficulty in maintaining companies in the Libra Association after resistance from regulators. According to them, Mercado Pago left the group on Friday (11), the same day that Visa, Mastercard, eBay and Stripe also made the decision.
In early October, the Wall Street Journal had already disclosed that Mastercard, Visa and other partners were rethinking support for Libra. In August, the Financial Times indicated that two partners were considering abandoning the project.
The idea of a digital currency administered by Facebook had a negative reception in several countries. France, for example, wants Libra to be banned in the European Union. The United States, on the other hand, asked for the suspension of its launch.
In general, regulators point to the currency’s risks to economic stability and the possibility of crimes such as money laundering being made easier with its existence. Just last week, two US senators warned Mastercard, Visa and Stripe about the dangers.
“If they accept that, they can expect a high level of scrutiny from regulators not just in Libra-related payment activities, but in all payment activities,” Democrats Sherrod Brown and Brian Schatz said in a letter sent days before companies withdraw their support.
When it comes to your cryptocurrency, Facebook shouldn’t have time off anytime soon. On October 23, Mark Zuckerberg is due to return to Washington, DC to give a statement to the Financial Services Committee of the US House of Representatives.