FAST FIVE: Libra Is Dead: EBay, Stripe, Visa And MasterCard All Abandon Facebook's Cryptocurrency
“We highly respect the vision of the Libra Association; however, eBay has made the decision to not move forward as a founding member.
We will follow its progress closely and remain open to working with the Libra Association at a later stage.” Hammering the final nail in the coffin of Zuckerberg's attempt to become the world's central banker, at roughly the same time the world's biggest credit card processors, Visa and MasterCard also announced they are dropping out of the Libra coalition.
The decisions by these anchor companies, whose departure effectively kills Libra, are a death blow to Facebook's plans for libra, the most ambitious attempt yet to get consumers to adopt a cryptocurrency to pay for goods and services on the internet, and follow intense scrutiny from regulators and politicians, some of which have called for the project to be stopped altogether, citing money laundering concerns and worries about wider financial stability.
Without a strong network of financial partners that could help transfer currencies into libra and global retailers to accept it as a form of payment, its reach would be non-existent. Earlier this week we also learned that CEO Mark Zuckerberg is going to testify in front of Congress about the plans later this month, although at this rate he won't have to: after all Libra is now dead.
A Libra spokesperson told the FT that: “We look forward to the inaugural Libra Association council meeting in just three days and announcing the initial members of the Libra Association.” At this point he may as well cancel it.