Visa and Mastercard have announced that they will no longer be part of Facebook’s Libra project, which is planned to be built on a secure, scalable, and reliable blockchain.
The news comes one week after PayPal announced its withdrawal from the project. The US-based payments firm has however said that it will continue to support Libra’s objectives.
Libra is a simple global currency and financial infrastructure that seeks to empower billions of people. It will be governed by the independent Libra Association, which was established to manage and evolve the new ecosystem.
Libra seeks to allow developers and businesses to build new, inclusive financial service products for people across the world.
Visa said it will continue to evaluate and its ultimate decision will be determined by several factors, including the Association’s ability to fully satisfy all requisite regulatory expectations.
The bank said: “Visa’s continued interest in Libra stems from our belief that well-regulated blockchain-based networks could extend the value of secure digital payments to a greater number of people and places, particularly in emerging and developing markets.”
Apart from Visa and Mastercard, several other large companies have unveiled their intention to exit the Libra project.
Payment processing firm Stripe and e-commerce giant eBay have also dropped out of the project.
Fintech company PayU is now the only payments firm continuing to support the cryptocurrency project.
The Libra Association, which was founded by 28 members in Geneva, Switzerland, hopes to grow to 100 members with an equal vote.