Mastercard, Visa, Stripe, eBay and Mercado Pago Exit Libra
Date: 11 – October – 2019
Days before the Libra Association reunion that will take place on Monday in Geneva, where they will ask the members to sign a charter agreement and become official partners, Mastercard, Visa, Stripe, eBay and Mercado Pago announced their exit from the project Libra.
David Marcus, head of Libra, via Twitter thanked Visa and Mastercard for staying until the last hour and added: “The pressure has been intense (understatement), and I respect their decision to wait until there’s regulatory clarity for @Libra_ to proceed, vs. the invoked threats (by many) on their biz.”
Also, he cautioned against reading this exits as the fate of Libra, and accepted that it’s not great news for the short them, “but in a way, it’s liberating…”
This week the US Senators, Brian Schatz of Hawaii and Sherrod Brown of Ohio, “cautioned” Mastercard, Visa, and Stripe, against supporting Libra because of the risk that poses for the financial system and on a letter they urged the companies to “carefully consider how your companies will manage these risks before proceeding…”
After the announcement of its exit, Mastercard said that they will focus on their strategy and own efforts to enable financial inclusion around the world and that they believe in the potential benefits of Libra and will continue to monitor it.
Visa was more direct in its statement saying that they will evaluate to join Libra in the future but one of the factors that they will consider for their decision is “…the Association’s ability to fully satisfy all requisite regulatory expectations…”
In the case of eBay, they expressed their support to the project, but according to Bloomberg, eBay will focus on rolling out their own “managed payments experience…”
And in the case of Stripe, they said that will follow closely the progress of the project, that they believe in the potential of Libra to make online commerce more accessible for people worldwide and are open to work with the Libra Association at a later stage.