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Visa and Mastercard to leave Libra project

A large flow of news from all sides regarding the new Facebook project was not in vain. It was that rainy day for Facebook when potential partner companies that expressed a desire to participate in this project began to refuse cooperation one at a time. So, Visa, Mastercard and a number of other financial companies are going to refuse to cooperate with the company on the development of Libra project.

Photo: Pixabay

The reason for these developments is quite simple – Zuckerberg’s idea was widely criticized by U.S. and European authorities. Thus, the U.S. Treasury Secretary mentioned that the U.S. administration “is concerned that libra can be used by people involved in money laundering and the terrorism financing.”

The U.S. President also didn’t stay away from the issue, noting that libra will have “low stability and reliability.”

G7 finance ministers warned that Facebook cryptocurrency could adversely affect the functioning of the whole international currency system.

Recall, Facebook in June announced its plans to launch its own cryptocurrency Libra in the 2020th. According to the company information, a digital currency transfer will be as simple as sending SMS to the phone. The functioning of the new currency will be based on blockchain technology – a decentralized database, the storage devices of which are not connected to a common server. A number of major U.S. corporations, including Visa, Mastercard, PayPal and Uber, previously announced that they intend to invest $10 million each in creating a consortium that will be managed by Libra.

As for the cryptocurrencies rates, the Friday’s reading is as follows:

  • Bitcoin slipped by 0.05 percent, to 8.152;

  • Ripple jumped by 2.55 percent, to 0.252;

  • Litecoin rose by 1.50 percent, to 56.81;

  • Ethereum added 1.26 percent, to 174.92;

  • Bitcoin cash grew by 1.14 percent, to 222.40 at 10.14 GMT.