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Visa, Mastercard, Stripe, and eBay exit Facebook’s Libra project (theverge.com)

1083 points by gkolli · 2561 days ago · 343 comments on HN

Article summary

Visa, Mastercard, Stripe, eBay, and Mercado Pago have withdrawn from the Libra Association, a project led by Facebook to create a global cryptocurrency. The withdrawals come after PayPal left the project a week earlier and deal a significant blow to Libra's plans. The companies cited regulatory concerns and a lack of clarity on the project's future as reasons for their departure. The Libra Association is set to hold its first official meeting in Geneva, where the remaining members will discuss the project's next steps.

Main themes

  • Libra project
  • cryptocurrency regulation
  • payment processors
  • Facebook's involvement
  • decentralized currency
  • privacy concerns
  • regulatory pressure

What commenters say

  • Some commenters believe that the payment processors withdrew from Libra due to regulatory pressure and the potential risks associated with the project.
  • Others argue that the true purpose of cryptocurrency is to act as digital cash, making the payment processor business model obsolete, and that Libra is not a true cryptocurrency.
  • A few commenters think that the companies' involvement in Libra was a strategic move to delay the adoption of real cryptocurrencies and maintain their existing business models.
  • Some believe that a digital currency backed by a floating basket of currencies is a good idea, but not when controlled by a company like Facebook.
  • There are concerns that Facebook's involvement in Libra could lead to abuse of the currency and compromise user privacy.
  • A few commenters suggest that a truly decentralized and open cryptocurrency is needed, rather than one controlled by a single company or entity.
  • Some argue that the payment processors' withdrawal is a result of the project's lack of progress and clarity, rather than any inherent flaws in the concept of Libra.
  • Others propose that central banks or a group of industry experts should create a cryptocurrency, rather than a private company like Facebook.