Why Mastercard, Visa and eBay quit Facebook’s Libra | Tech Wash


For anyone following the
troubled attempts by Facebook to create a new global
digital currency Friday the 11th of October
was a pretty dramatic day. Within the space of
about three hours, five different companies all
announced they no longer wanted to be a part of Project Libra. We at the FT had been hearing
rumours about a possible mass defection from the
scheme for quite a while. From the moment, in fact, when
David Marcus, the co-creator of this project, testified
here in Washington DC in front of Congress, and was
given something of a mauling. It was clear something
was happening last Friday when I received a text
from a source telling me that MasterCard was
about to drop out, at the same time that
my colleague Hannah Murphy in San
Francisco was hearing the same thing about eBay. And within hours, confirmations
came tumbling out, not just from
MasterCard and eBay, but also from Visa, from
Stripe, and from Mercado Pago. So what was it that brought
these companies, finally, to decide they no longer
wanted to be involved? Well my sources tell
me it was a letter, signed by two democratic
senators, Brian Schatz and Sherrod Brown, in which they
warned the payments companies that if they proceeded
with the project, their existing businesses
would come under greater regulatory scrutiny. The companies
decided they simply couldn’t afford that risk,
and so they backed out. So can Facebook proceed
with this project? Well technically, it can. And Mark Zuckerberg says
the will is still there. He is testifying in
front of Congress next week about it, in fact. But with mistrust
of Facebook being one of the few things that
still unites Democrats and Republicans it would
be a brave regulator who decides to give this
project the green light.

17 thoughts on “Why Mastercard, Visa and eBay quit Facebook’s Libra | Tech Wash”

  1. Of course visa MasterCard would withdraw, Facebook currency is a threat against their own payment processing. Not only that, Facebook has access to millions of transaction data. Facebook is a scum company, they are worth billions just from advertising company so you can understand how much they know about you

  2. Gov is starting to clash with corporation because corporation's power keep expanding. People can insist corporations are gov proxy, but you see, proxy can become sovereign and independent when they become as powerful or more powerful than their former benefactor. At this point, the only power gov have over corporation is they have army, police and power to issue currency. But corporation will have all those three very soon, especially if there is an event that caused gov around the world to collapse. The future is corporatocracy.

    Government may have power, but now corporations decides who can be elected because they become the middle man, haha. Government may issue currency, but corporations can too soon, government have military and police? well, Blackwater is always ready for contracts. Knight templars used to bow to kings until they become more powerful than all kings of europe. And this time, they learned from history and experience of the past. Napoleonic revolutions will be child play compared to the future.😘

  3. digital currencies are basically like the new streaming services…it seemed like it made sense for everyone to be on netflix at first, but really the infrastructure is cheap and everyone can actually set up their own… the mistrust issue for the financial services company is simply a ruse, they don't care about those laws or conflict of interests (though governments should) they don't want facebook to be able to capitalise most on these transactions

  4. I'm glad ft is getting into YouTube. But please step up the production quality. There's a lot of information in the video but it looks like it was made in a college students bedroom in 2014.

  5. What if the fascinated heavy ate the session? The noisy package educates into the hard twist. Does not wonder if how not why?

  6. Saya sudah dapat 300 lib lebih libra setara Rp.4. 290.000, dalam waktu cepat. Itu aja saya agak malas-malasan claim ya.
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    Kuncinya tekun claim aja..
    Ini link pendaftarannya

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