Mass exit of investors from Libra

Judy Rubio

PayPal left the Libra project. The service intends to focus all its efforts on its business. The payment system said that the decision was not related to regulatory concerns. This statement was made by PayPal CEO Dan Shulman.

PayPal plans and goals

The head of the payment system said that Libra's goal is to make financial services more accessible. This moment aroused interest in PayPal. After evaluating the scope of work, the organization decided to use resources for its development in the same direction.

Mr. Shulman noted the strong relationship between PayPal and regulators. The top manager confirmed that his company is already developing in the field of cryptographic currencies and blockchain. He didn't give details. Today, digital money is more used as a commodity than as a means of payment. Dan Shulman said that from crypto assets, he invested money exclusively in bitcoin.

As a result, PayPal joined other Libra Association members who officially withdrew from the project. Before that, a number of other major investors did the same.

Facebook confirmed the exit of PayPal. According to the social network, it will continue to interact with other partners. It is predicted that the Charter of the organization will be signed in Geneva in the near future. According to preliminary information, PayPal believes that Facebook did not do everything possible to meet the requirements of regulators in the field of legislation in the field of money laundering. 

The Facebook cryptocurrency has many opponents. For example, Bruno Le Maire, who heads the French Finance Ministry, promised to block the development of a digital asset in the European Union. Read more about the Facebook cryptocurrency in the article "What is Libra?

eBay, Mastercard and Visa have left Libra

The above-mentioned organizations, as well as Stripe and Mercado Pago, have left the Facebook cryptocurrency project. Representatives of the eBay e-Commerce service noted, "We respect Libra's position. But eBay decided not to go ahead as a co-founder. We are now focusing all our efforts on using managed payments for our customers."

Stripe noted Libra's great capabilities, but now the company is focusing on supporting projects that are developing e-Commerce on a global scale. Its representatives noted, "We will continue to monitor the progress of Libra development and be open to partnership with the Association, but now we are interested in later stages of development."

The Visa payment system also announced that it is currently transferring its membership to Libra Association. Its representative noted: "We will continue to evaluate the situation, and our final decision will be influenced by various factors, including the ability of the organization to fully meet the requirements of regulators."

Visa noted that blockchain-based technologies have a huge potential, which is greater than all current payment systems. A company representative said, "Visa's strong interest in Libra is due to the belief that blockchain-based networks have huge opportunities to increase the value of digital payments for a large number of users, primarily in developing countries."

David Marcus, who serves as CEO of Calibra, said that he respects the decision of Mastercard and Visa not to rush to join Libra until the uncertainty in relations with regulators is resolved. He is sure that the departure of such large participants does not mean that the project is doomed. Marcus admitted that this news is not very positive for the short-term prospects of the cryptocurrency.

Uber, Lyft and Anchorage have no plans to exit Libra. Representatives of the company supported by Visa noted, "Anchorage plans to continue supporting the project's missions and appreciates the opportunity to be a founding member of the project, who has been working with Libra since its inception."

The US Treasury Department commented on the exit of companies from Libra

Large companies are increasingly withdrawing from the Libra project, which previously positioned themselves as partners of the Libra cryptocurrency. Their position is explained by their concerns about the non-compliance of the proposed project with the requirements of the regulator. This was stated by Steven Mnuchin, who heads the United States Treasury Department.

Just six months ago, 28 organizations were named as Libra Association partners. Now there are 21 participants with the Facebook coin. Mnuchin said that he met with representatives of the cryptocurrency many times. He confirmed during these meetings the plans of the us authorities to counteract the start of the digital currency.

The Minister noted, "I believe that Libra realized that it is not ready at the moment and does not meet the requirements. I think that a number of partners are concerned about this point. This will continue until the company meets these standards."

The head of the largest American crypto exchange Coinbase, Brian Armstrong, expressed his opinion regarding a number of politicians who prompted the payment systems Mastercard and Visa to leave Libra Association. He believes that such actions are "UN-American".

Armstrong continued his thought. He said that regardless of the opinion on Libra, the coin should be an innovative tool that can bring real benefits. Otherwise, the coin will simply have no customers.

The Libra project was actively gaining popularity, and many people wanted to become its partners. Now the situation is changing to the opposite. Large companies are leaving the ranks of followers of the Facebook cryptocurrency, while voicing various reasons. The main one is problems with regulators. This state of affairs may be suitable for buying company shares and cryptocurrencies. If the problems are resolved, the asset price will go up sharply. This will open up additional opportunities for earning.