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Several Top-notch Companies Like Visa, Mastercard, EBay Quit Facebook’s Libra Project

The US lawmakers have attacked Facebook on its Libra project, calling it "delusional" and "dangerous"

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facebook, servicefriend, startup, cryptocurrency, libra
Representations of virtual currency are displayed in front of the Libra logo in this illustration picture. VOA

In  a major jolt to Facebook, several top-notch companies like Visa, Mastercard and EBay have pulled out of the Libra cryptocurrency project ahead of their first meeting in Geneva on October 14.

PayPal was the first to announce its withdrawal from the Libra Association — the 28-member non-profit organisation formed by the social networking giant for the global roll out of its digital currency Libra next year.

“Over the course of a few hours, Visa, Mastercard, Stripe and Mercado Pago all bailed on the project. That meant every major US payment processor has exited the association,” reports The Verge.

David Marcus, Libra project head at Facebook, tweeted: “I would caution against reading the fate of Libra into this update. Of course, it’s not great news in the short term, but in a way it’s liberating. Stay tuned for more very soon. Change of this magnitude is hard. You know you’re on to something when so much pressure builds up”.

“Special thanks to @Visa and @Mastercard for sticking it out until the 11th hour. The pressure has been intense (understatement), and I respect their decision to wait until there’s regulatory clarity for @Libra_ to proceed, vs. the invoked threats (by many) on their biz,” he added.

The pull out is to avoid the US regulators who are scrutinizing Facebook and its subsidiaries.

facebook, servicefriend, startup, cryptocurrency, libra
Bitcoin, which has risen in value for eight consecutive days, received a boost after Facebook has said it would offer its own cryptocurrency, the Libra coin by end of June 2020. Pixabay

Facebook CEO Mark Zuckerberg is set to testify before the US House of Representatives on October 23 to discuss concerns over ‘Libra’ that has run into rough weather.

Zuckerberg will be grilled by lawmakers and regulators during the Q&A session at the US House Financial Services Committee.

In July, Congresswoman Maxine Waters (D-CA), Chairwoman of the committee sent a letter to Facebook requesting an immediate moratorium on the implementation of Facebook’s proposed cryptocurrency, Libra, and digital wallet, Calibra.

Also Read: Apple Planning to Integrate its Own 5G Modem in iPhones by the Year 2022

The US lawmakers have attacked Facebook on its Libra project, calling it “delusional” and “dangerous”.

According to a Visa spokesperson, the company “will continue to evaluate and our ultimate decision will be determined by a number of factors, including the Association’s ability to fully satisfy all requisite regulatory expectations”. (IANS)

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Private Firms Shouldn’t Censor Politicians, News: Facebook CEO Mark Zuckerberg

Facebook recently allowed US President Donald Trump's campaign office to post a fake ad about Democrat presidential hopeful Joe Biden on its platform

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2020, Facebook
FILE - Facebook CEO Mark Zuckerberg speaks at a Facebook developer conference in San Jose, California, May 1, 2018. VOA

Defending Facebook’s policy of not removing political advertisements containing false information, Facebook CEO Mark Zuckerberg has said that a private company should not be censoring politicians and news.

Challenged on CBS over the policy, Zuckerberg said “people should be able to judge for themselves the character of politicians”.

The policy has faced criticism from several quarters due to concerns that ads containing false information may spread misinformation and distort elections.

“What I believe is that in a democracy, it’s really important that people can see for themselves what politicians are saying, so they can make their own judgments,” the Facebook CEO was quoted as saying.

While demands for reconsidering the policy emanated even from within the organisation, Zuckerberg did not commit to any changes.

Mark Zuckerberg. (Wikimedia Commons)

While Twitter has banned all political ads, Google last month announced new restrictions on such ads.

The Internet search giant put new limits on political advertisers globally from micro-targeting users via election ads based on their political affiliation.

Also Read: LinkedIn Visualizes 20 Times Growth in Coming 10 Years in India

The main formats Google offers political advertisers are Search ads, YouTube ads and display ads. Under the new rules, political advertisers may target their ads only down to the postal code level.

Facebook recently allowed US President Donald Trump’s campaign office to post a fake ad about Democrat presidential hopeful Joe Biden on its platform. (IANS)