from the seemed-like-a-good-idea-at-the-time dept.
Arthur T Knackerbracket has found the following story:
The coalition Facebook assembled to create a global payments network may be losing some key financial support. Visa, Mastercard and other financial partners who signed on to support Libra are reconsidering their involvement in the network, The Wall Street Journal reported Tuesday.
The financial partners are reluctant to attract regulatory scrutiny following backlash from governments and banks and have declined Facebook's requests to publicly support the project, the Journal reported, citing sources familiar with the matter.
[...] Visa declined to comment. Representatives from Facebook and Mastercard didn't immediately respond to requests for comment.
Also at The Wall Street Journal.
Related Stories
PayPal withdraws support for Facebook's Libra cryptocurrency
PayPal has decided to withdraw from the Libra Association, the 28-member nonprofit organization formed in June 2019 to oversee the cryptocurrency's creation and eventual consumer rollout.
The company doesn't cite a specific reason, saying only in a statement to The Verge that it decided "to forgo further participation in the Libra Association at this time and to continue to focus on advancing our existing mission and business priorities as we strive to democratize access to financial services for underserved populations."
[...] a report published by the Financial Times yesterday said PayPal had begun distancing itself from the project amid increasing regulatory scrutiny. The company reportedly signaled its intention to skip a meeting in Washington, DC scheduled for today, and the FT reports that at least one primary concern for PayPal has been the lack of attention Facebook executives have paid to Libra's considerable backlash. Another key concern is how the platform will combat money laundering activity.
[...] Losing PayPal does not necessarily signal the eventual unwinding of Libra, but the company was a major financial player, alongside existing members like Mastercard and Visa, of the Libra Association. Facebook's blockchain chief David Marcus, who oversees Libra and Facebook's companion digital wallet app Calibra, was also a former PayPal president prior to running Facebook Messenger for the social network.
Losing PayPal, in that context, is not a great sign for the health of the project. The Wall Street Journal also reported earlier this week that both Mastercard and Visa, as well as digital payment platform and processor Stripe, were also considering withdrawing from the association over similar money laundering concerns. It's unclear if fellow Libra Association member eBay, from which PayPal was spun out in 2015, plans to continue participating.
Related: Visa, Mastercard Reportedly Reconsidering Support For Facebook's Libra
Submitted via IRC for SoyCow1337
Senators pressure Visa and Mastercard over work on Facebook's blockchain project
'If you take this on, you can expect a high level of scrutiny from regulators'
Lawmakers have begun actively pressuring members of the Libra Association, the international blockchain payments project led by Facebook, to reconsider their involvement with the group.
In a new letter sent to the CEOs of Visa, Mastercard, and Stripe, Sens. Brian Schatz (D-HI) and Sherrod Brown (D-OH) warn of enormous risks inherent in the Libra project, including facilitating criminal and terrorist financing and destabilizing the global financial system. The letter also suggests the companies would face increased oversight from financial regulators in their conventional, non-blockchain businesses if they continue with the association.
"Facebook appears to want the benefits of engaging in financial activities without the responsibility of being regulated as a financial services company," the letters read. "If you take this on, you can expect a high level of scrutiny from regulators not only on Libra-related activities, but on all payment activities."
Republicans have also been skeptical of the project, with Sen. Josh Hawley (R-MO) describing it as Facebook "expanding their monopoly."
As payment processors, all three companies face significant federal regulatory burdens, including from the Federal Trade Commission, Consumer Financial Protection Bureau, and the Department of Justice. Facebook is already facing growing scrutiny from those agencies — particularly the FTC, which reached a $5 billion settlement with the company earlier this year. None of the three payment processors immediately responded to a request for comment.
Previously:
PayPal Withdraws Support for Facebook’s Libra Cryptocurrency
Visa, Mastercard Reportedly Reconsidering Support For Facebook's Libra
Stormclouds Gather for Facebook's Libra Currency
Submitted via IRC for AnonymousCoward
More Libra woes:
EBay, Stripe and Mastercard drop out of Facebook’s Libra Association – TechCrunch
Oof — a week after PayPal announced plans to part ways with Facebook’s Libra cryptocurrency project and the related association of the same name, three more names are reportedly breaking away: eBay, Stripe and Mastercard. (Update: and now Visa!)
In a comment to TechCrunch, a Stripe spokesperson leaves the door open for them to potentially work with Libra in the future — but not right now:
“Stripe is supportive of projects that aim to make online commerce more accessible for people around the world. Libra has this potential. We will follow its progress closely and remain open to working with the Libra Association at a later stage.”
Previously:
Visa, Mastercard Reportedly Reconsidering Support For Facebook's Libra
PayPal Withdraws Support for Facebook’s Libra Cryptocurrency
(Score: 0) by Anonymous Coward on Thursday October 03 2019, @04:29PM (1 child)
may create a reserve currency for international crime... Sounds like a job for Greece?
(Score: 3, Touché) by JoeMerchant on Thursday October 03 2019, @04:48PM
Sounds like a honey pot, to me.
🌻🌻 [google.com]
(Score: 2) by Entropy on Thursday October 03 2019, @05:25PM
In order to distract you from using real crypto currency that they can't track/control/everything you don't want in a crypto currency. News at 11.
(Score: 2) by epitaxial on Thursday October 03 2019, @06:13PM
the tulip brigade shows up to show how smart they are.
(Score: 5, Funny) by NotSanguine on Thursday October 03 2019, @06:39PM (5 children)
Is generally a poor idea.
Besides, Facebook as central bank? No thank you.
Facebook will ruthlessly track and data mine to continue building their "consumer profiles."
Cash is definitely the way to go. preferably pennies. I've expounded on the use of pennies before.
1. They are relatively untraceable, especially if you don't roll them or remove them from rolls;
2. They are relatively safe, as pennies (weighing 2.5 grams each) are difficult to steal, as $100 in pennies weighs 25kg (~55 lbs);
3. They can result in significant savings, when you plunk the sack of pennies on the counter and say "just let me know if this isn't enough.
Pennies. The money of today. And tomorrow.
No, no, you're not thinking; you're just being logical. --Niels Bohr
(Score: 0) by Anonymous Coward on Thursday October 03 2019, @09:23PM (4 children)
You might want to rethink your strategy based on this information [youtube.com].
(Score: 2) by NotSanguine on Thursday October 03 2019, @10:52PM
That's not "information," that's a youtube video. There's a big difference.
Thanks for the suggestion, but I'd rather have my tonsils extracted through my ears.
No, no, you're not thinking; you're just being logical. --Niels Bohr
(Score: 4, Interesting) by NotSanguine on Thursday October 03 2019, @10:53PM (1 child)
And just to clarify, if whatever "information" is in this video isn't available as *not a video* somewhere else, it's likely garbage anyway.
No, no, you're not thinking; you're just being logical. --Niels Bohr
(Score: 1) by khallow on Friday October 04 2019, @01:43PM
(Score: 2) by NotSanguine on Thursday October 03 2019, @10:55PM
Oh, and some guy named Poe [wikipedia.org] called. He'd like a word with you.
No, no, you're not thinking; you're just being logical. --Niels Bohr