Multiple companies leave Libra ahead of Council meeting in Geneva

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We’ve been following Libra with keen interest ever since the cryptocurrency was first announced by Facebook earlier in the year.

Following said announcement the excitement surrounding the platform, which is aimed at unbanked consumers in the developing world, Libra has faced heavy scrutiny, particularly for its potential to destabilise traditional banking systems.

Now Libra has been dealt another blow, as several high-profile partners have decided to step away from the platform in the past few days.

One of the first high-profile losses was PayPal, which stepped away on 4th October. More recently Mastercard, Visa, Stripe, Mercado Pago and eBay all decided to leave too on 11th October, with those first two being significant losses if Libra is hoping to have big names facilitate online payments via the crypto.

While losing five large entities like that is concerning, as The Verge points out, the timing of the losses is perhaps more telling, with all members that are a part of the Libra platform meeting in Geneva today.

The Libra Council meeting as it is being termed is aimed at ironing out the different roles that all the stakeholders will play in the platform, as well as address some of the governance and regulation issues that have been raised by entities ever since Libra was first announced in June.

Added to this, and more importantly, the Council meeting would also see all parties sign a a new agreement, which is likely why all of these other firms have decided to pull out at this stage.

While the future of Libra is still uncertain at this stage, this latest development is less than ideal, and places its potential launch in jeopardy, not to mention the loss in confidence that some countries may have now that Mastercard, Visa and PayPal are no longer a part.

Either way it looks like Facebook has some tough convincing to do if it plans on getting this crypto off the ground.

[Image – Photo by Jan Tinneberg on Unsplash]

Robin-Leigh Chetty

Robin-Leigh Chetty

When he's not reviewing the latest smartphones, Robin-Leigh is writing about everything tech-related from IoT and smart cities, to 5G and cloud computing. He's also a keen photographer and dabbles in console games.