In the wake of Paypal’s very public exit from the Libra project, U.S. lawmakers are now pressuring Stripe, Visa and Mastercard to rethink their membership of the Libra Association as well. On October 8, three letters from two U.S. senators urged the tech and finance giants to “carefully consider” risks before moving forward.
More Political Pressure
As news.Bitcoin.com recently reported, Paypal has cut ties with Facebook’s upcoming crypto project by leaving the Libra Association. Libra is no stranger to strongly worded letters from government legislators, and now even corporations supporting the project are getting a taste of the regulatory backlash. Letters written by two U.S. Senators, Brian Schatz (D-Hawaii) and Sherrod Brown (D-Ohio), were sent to San Francisco-based online payment processor Stripe Inc., and finance giants Visa and Mastercard. The letters stated, in part:
We urge you to carefully consider how your companies will manage these risks before proceeding, given that Facebook has not yet demonstrated to Congress, financial regulators — and perhaps not even to your companies — that it is taking these risks seriously.
The risks referenced include those posed to “consumers, regulated financial institutions, and the global financial system.” The letters are only the latest episode in Libra’s ongoing struggle against lawmakers attempting to stall the legally ambiguous project, tracing back to a direct call for moratorium last summer from U.S. Congress Chair of the House Financial Services Committee, Maxine Waters. The concerns then was the same as now, mainly that Libra could disrupt the global economy.
Paypal’s Reasons for Leaving
While Paypal representatives did not cite a specific reason for leaving the Libra Association,