When the Libra first launched back in June, it looked unstoppable.
But between October 4th and October 11th, members have been dropping like flies.
First, PayPal withdrew.
Then, yesterday, another five members followed. Visa, MasterCard, Stripe, Mercado Pago and eBay have all bailed.
That means that there is only one US payment processor left. But PayU has been silent, despite multiple requests for comment.
What’s going on?
Right now, timing is the key factor.
On Monday, the founding members will convene in Geneva for the first Libra Council.
The goal is to hammer out the different roles each member will play.
But part two of the goal is to create a formal charter. And each member will have to sign that agreement.
Each of the bailing members were all payment processors.
They face a slew of regulatory requirements. They must deal with fraud, money laundering and sanctions enforcement. It’s a heavier burden than other members are up against.
“Facebook appears to want the benefits of engaging in financial activities without the responsibility of being regulated as a financial services company.”
Read more here.