Global payment processors MasterCard and Visa have reportedly abandoned the Facebook’s plan to enter into the cryptocurrency market with its Libra Project.
The move by both firms is one of a series of challenges which Libra has been facing in recent times. Upon the release of the Libra white paper in June, 2019, the crypt industry came out with their opinions on the impact of Libra especially as Facebook is not trusted with users data.
Upon the release of the Libra white paper in June, 2019, the crypt industry came out with their opinions on the impact of Libra especially as Facebook is not trusted with users data.
Facebook through Libra intends to create a global financial system that will help the unbanked all across the globe access the financial system. The project will have its own wallet called the Calibra.
According to Facebook, the Libra will be ran by the Libra Association. A group of global firms in various industries.
Since the public release of the Libra white paper, Facebook has been seeing stiff challenges from nations all over the world not excluding regulators from within the United States.
The decision to abandon the project could be attributed to the issues Libra is facing from all over the world.
Not including MasterCard and Visa, other members of the Libra Association have also given the project a goodbye wave such as Stripe, EBay and PayPal according to a report by Bloomberg.
Not long ago, the People’s Republic of China revealed their intention to launch a national cryptocurrency, one which would be a competition to the Libra. Meanwhile, nations such as India and France have revealed their opinions on the Libra Project.
According to Bloomberg, the news if the payment processors abandoning the project comes before a meeting of the members of the Libra Association where the members would convene to sign a charter agreement.
Speaking on the fate of the Libra Project as some members of the Libra Association exits, co-founder of Libra, David Marcus said ” I would caution against reading the fate of Libra into this update.”
He went further saying, “Change of this magnitude is hard. You know you’re on to something when this much pressure builds up.”
Facebook revealed Libra will be launched in a few months time in 2020.