Why Mastercard, Visa and eBay quit Facebook's Libra

Synopsis

On Friday, October 11th, five major companies, including MasterCard, Visa, and eBay, announce their withdrawal from Facebook's Project Libra within a dramatic three-hour period. This mass defection follows growing concerns about regulatory scrutiny, particularly after David Marcus, the project's co-creator, faced tough questioning during his testimony in Washington DC. Sources indicate that a letter from Democratic senators Brian Schatz and Sherrod Brown played a crucial role in the companies' decisions, warning that their existing businesses could face increased regulatory oversight if they continued with the project. Despite these setbacks, Mark Zuckerberg asserts that Facebook still intends to move forward with Project Libra and is scheduled to testify before Congress next week. However, the prevailing mistrust of Facebook among lawmakers raises significant doubts about the project's future viability.