Mastercard, VISA, Ebay, Stripe and Mercado Pago announced a few hours ago that they are leaving Facebook’s Libra cryptocurrency project.
If the press releases of each other are politically correct and leave certain doors open, the blow is particularly severe for the stablecoin project which has just lost, in the space of a week, all its partners working in the industry electronic payments.
Who Libra will see
The pressure is increasing every day on the project Libra Facebook, which is already struggling to deal with the general outcry from regulators around the world, suffers weekly defections from members of the original Foundation.
If the ball of the sauve which can had started a few days ago with the reverence drawn by Paypal, tempered by Libra in mode “No problem, lots of companies are courting us to enter the round” , a veritable burst of slammed doors has just resounded in the Swiss manor of Mark zuckerberg.
Let’s judge: VISA and MasterCard officially announced Friday, October 11, to withdraw from the project, around the same time asEbay, Stripe and the South Americans of Mercado Pago.
Obviously, it did not take long to see perfectly formatted press releases in the media editorial offices in order, on the one hand, to communicate on a subject on which the financial world has its sights set, but also calibrated so not to insult the future. As such, that of VISA is a model of its kind:
“Visa has decided not to join the Libra Association at this time. We will continue to assess matters and our final decision will be determined by a number of factors, including the ability of the Association to fully meet all required regulatory expectations. ”
Equally good communicator, the CEO of Libra David Marcus quickly reacted by not failing to thank these (almost) partners:
“Thank you to @Visa and @Mastercard for staying until the 11th hour. The pressure was intense (to put it mildly) and I respect their decision to wait until the regulations are clear so that @Libra can move forward, in relation to the threats invoked (by many) regarding their activities. “
A big strategic loss
Beyond the disastrous announcement effect on the image of the project and the loss of several important members, there are – to fashion nesting dolls – bad news in bad news: between the defection last week of Paypal and the departure of VISA and MasterCard today, Libra finds itself without large members evolving in the physical and electronic payments sectors.
However, by Facebook’s own admission, and as recalled both in the White Book of the project and the recent warning communicated to investors this summer, this is a real weakness of the Californian company which counted on solid partnerships on this subject which is both complex and strategic.
Unfortunately for the hegemonic monetary project of Facebook, it seems that these big financial actors received 5 out of 5 the very recent message from the American Tax Administration: To persist in remaining within Libra is to be guaranteed to undergo thorough controls and nitpicking, not only on the project itself, but also on the traditional financial activities of partner companies.
Sauron’s eye of the DRY and the American taxman seeming to pose an effective threat, it will be thank you, but no thank you, therefore.
Even if Dante Disparte, head of communications for Libra, said this morning again “being eager to hold the inaugural meeting of the association’s council, and to announce the first members”, perhaps there is still time to cancel the village hall and the Champagne boxes, as the future of Libra has never seemed so bad.
Nice to meet you, it’s Hellmouth! Editor-in-chief of Bitcoin, the crypto media you are honoring to survey right now (well done, you have taste).
Crypto-enthusiast of the second hour, nothing is more important to me than supporting the global adoption and democratization of the treasures that the blockchain offers us.
I write articles between two cocktails in Tahiti, my adopted island, and do not hesitate, if the opportunity arises, to feast on a plump scam or a little too enterprising Ponzi pyramid.
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