Facebook’s attempt to create its own cryptocurrency has hit a major roadblock as major financial players, such as PayPal, Stripe, Visa, and eBay, have all withdrawn from the project. The project, named Libra, aimed to establish a single global currency but has faced numerous problems in recent months. The withdrawal of major financial backers is likely to decrease the project’s chances of success.
Controversy
The project has faced criticism from various groups, including those within the tech industry, regulators, politicians, and social media users, particularly in the United States. Last week, PayPal’s withdrawal prompted other companies to follow suit. While the companies praised the concept of a globalized currency, they did not want to be involved in this project at the moment.
However, the companies did not rule out working on the Libra project in the future. Facebook will continue to develop the project and explore its potential consequences for consumers.
Roll-out Plans
Facebook CEO Mark Zuckerberg will testify before a Congressional committee in Washington D.C. later this month regarding the Libra project and the company’s plan for its roll-out. This new concept is the latest in the use of cryptocurrency as a standard currency worldwide. Critics argue that digital currencies would increase money laundering and other financial crimes since money would be easier to replicate than traditional paper, plastic notes, or metal coins.
Politicians across the European Union, including representatives from France and Germany, have already stated that they would block Libra’s usage in member countries if it were introduced onto the world stage. The Libra Association, a group of 28 companies and for-profits supporting currency development, currently oversees Libra. Remaining members include Uber, Vodafone, Spotify, and Farfetch.