Facebook’s Cryptocurrency is Collapsing in Front of Our Eyes

Visa, MasterCard, Stripe, eBay, and PayPal have all abandoned Facebook's crypto project.

Crumbling Crypto

Facebook's plans to establish Libra, its cryptocurrency, is falling apart in real time.

After facing major backlash from governments around the world, many of the 28 original corporate backers jumped ship.

Partners were meant to help Facebook build a powerful network and help spread Libra around the world. But last week, PayPal withdraw from the Libra Association, the body that was meant to oversee Libra's creation and rollout. And today Visa, MasterCard, Stripe, and eBay abandoned the crumbling project as well.

Rough Road

Facebook's plans for its cryptocurrency drew criticism and scrutiny from regulators. Their reasoning: a technology platform with two billion users could end up undermining and threatening local economies by privatizing financial interactions.

Facebook's own image had already been tarnished significantly in light of an ongoing antitrust probe by the U.S. Justice Department. Presidential candidate Elizabeth Warren also joined the fray by announcing plans to break up tech megacorporations including Facebook.

Europe is fuming as well: Facebook and the Libra Association are facing a grilling by European Union regulators.

Tarnished Reputation

Could Libra be Facebook's downfall, as some experts have predicted? It's too early to tell.

Nonetheless, the Libra Association is moving ahead. "We look forward to the inaugural Libra Association Council meeting in just 3 days and announcing the initial members of the Libra Association," Libra Association policy chief Dante Disparte told The Verge.

READ MORE: Facebook’s Libra Association crumbling as Visa, Mastercard, Stripe, and eBay exit [The Verge]

More on the Libra: French Gov Official Warns Facebook: Libra Is Not Welcome Here