Some of the largest financiers of Facebook’s Libra cryptocurrency have backed out of the project, threatening to derail an ambitious initiative to remake global finance before it ever gets off the ground.
Visa, Mastercard, Stripe, and eBay, which signed up for a Facebook coalition of financial backers for its worldwide cryptocurrency-based payment system set to be launched next year, said they were withdrawing their support for Libra.
Global payment system PayPal also dropped out of the Libra association.
Facebook announced in June that it plans to issue the Libra coin — a digital currency backed by high-profile tech companies. The move was opposed by regulators and banks who see Libra coin as a big risk to global financial stability.
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One of Libra’s financial backers, South African consumer internet group Naspers, reaffirmed its commitment to Facebook’s proposed Libra cryptocurrency despite cold feet from its original backers and concerns from politicians.
Facebook has also indicated it was having conversations with banks and hoped to have some of them on board by the time Facebook’s cryptocurrency launches next year, according to Financial Times, but most banks are replying to Facebook’s request with a “No, thank you”.
