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Twitter reacts to US Senators warning Visa, Mastercard and Stripe about Libra involvement

  • The three payment giants have been very concerned with their involvement in Libra.
  • PayPal had earlier pulled out of the Libra Association, citing negative regulatory attention.

The spotlight is currently shining brightly on Visa, Mastercard and Stripe following PayPal’s exit from the Libra Association. As per Finance Magnates, two senate democrats – Sen. Sherrod Brown of Ohio and Sen. Brian Schatz of Hawaii – are requesting the three payment giants to follow PayPal’s lead. They have sent three letters to the CEOs of the company. In it, they have pointed out the dangers of digital currencies and the potential business risks they may attract.

As previously reported by FX Street, following PayPal’s exit, Visa, Mastercard and Stripe are looking to pull out of the project to avoid negative regulatory attention. The Senators said:

“Facebook is currently struggling to tackle massive issues, such as privacy violations, disinformation, election interference, discrimination, and fraud, and it has not demonstrated an ability to bring those failures under control.

You should be concerned that any weaknesses in Facebook’s risk management systems will become weaknesses in your systems that you may not be able to effectively mitigate.”

Twitter Reactions

Jason Kint, CEO of Digital Content Next:

"PayPal out. Previous reporting said Visa and Mastercard also reconsidering. I was really surprised they all jumped on this “trust ship” together in first place considering the investigations and obfuscations involving Facebook leadership on other matters."

Emin Gün Sirer, CEO AVA labs:

"I keep saying: permissioned systems are very hard to keep together. The coalitions always crack. You need to have a way to connect permissioned networks like Libra to larger, permissionless systems. Let's give FB time, they'll eventually get it"

Scott Monty, keynote speaker and corporate advisor:

"When Congress is telling you something looks shady, it's time to get out."

Author

Rajarshi Mitra

Rajarshi Mitra

Independent Analyst

Rajarshi entered the blockchain space in 2016. He is a blockchain researcher who has worked for Blockgeeks and has done research work for several ICOs. He gets regularly invited to give talks on the blockchain technology and cryptocurrencies.

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