Facebook’s Libra could be a flop after Visa, Mastercard & eBay abandon project ahead of launch

Facebook’s plan to introduce its own cryptocurrency, Libra, next year has faced another serious setback, after Visa, Mastercard, eBay and Stripe became the latest companies to pull out from the project.

In statements following their decision, the companies said that they were still interested in the cryptocurrency as a secure digital payment method, but have chosen to focus their resources on other projects for the time being.

Facebook declined to comment about the companies’ exit, while the Libra Association said that it was focused on “moving forward and continuing to build a strong association” of businesses that will accept the currency.

The move comes just a week after PayPal announced its withdrawal from the Geneva-based Libra Association, which is charged with managing the Facebook-led global currency. Mercadopago and PayU are now the only two payments companies continuing to back Facebook’s digital cash.

The social media giant unveiled plans last summer to launch Libra by June 2020. However, the project faces serious regulatory hurdles. France and Germany both stated last month that they would attempt to block Libra from operating in Europe, saying it posed risks to EU states’ sovereignty.

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