• 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."

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

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