One of the first major partners to withdraw from the Libra initiative was PayPal, who departed on the 4th of October.
As we already know, there has been much scrutiny from lawmakers and anti-trust regulators regarding the security of the cryptocurrency and data alongside the volatility of Libra. The exits of the previously mentioned companies and the different criticisms from regulators represent a serious blow to the initiative and the uncertain future of Libra.
PayPal’s former President David Marcus tweeted regarding the exit of Visa and MasterCard, thanking them for supporting Libra for this long.
I would caution against reading the fate of Libra into this update. Of course, it’s not great news in the short term, but in a way it’s liberating. Stay tuned for more very soon. Change of this magnitude is hard. You know you’re on to something when so much pressure builds up.
— David Marcus (@davidmarcus) October 11, 2019
MasterCard and Visa were urged by regulators to withdraw from the Libra Association, after expressing how they were reluctant to offer public support for Libra.
We will continue to evaluate and our ultimate decision will be determined by a number of factors, including the Association’s ability to fully satisfy all requisite regulatory expectations. Visa’s continued interest in Libra stems from our belief that well-regulated blockchain-based networks could extend the value of secure digital payments to a greater number of people and places, particularly in emerging and developing markets.
eBay’s representative said:
We highly respect the vision of the Libra Association; however, eBay has made the decision to not move forward as a founding member. At this time, we are focused on rolling out eBay’s managed payments experience for our customers
Stripe remained neutral and stated they would consider re-joining the association in the future when Libra settle the regulatory issues currently taking place. A spokesman said:
Stripe is supportive of projects that aim to make online commerce more accessible for people around the world,” a spokesperson told Business Insider. “Libra has this potential. We will follow its progress closely and remain open to working with the Libra Association at a later stage.
Finally, Facebook has already announced they will do their best to satisfy the concerns of US and EU regulators before launching their project.