- Facebook’s Libra vision seems to be going down as US senators passed an open letter
- Letters were sent to the two main card companies, MasterCard and Visa
- Following PayPal’s exit, US senators are seeming to capture the tide
Right after PayPal’s unwarranted exit from the Libra association, citing uncertainty, US senators have recently passed an open letter to the two largest intermediating firms, MAsterCard and Visa. The attempt was made by the senators to ensure the continuous downfall of the Libra project before it even kicks off the ground.
“Facebook appears to want the benefits of engaging in financial activities without the responsibility of being regulated as a financial services company,” the letters read. “If you take this on, you can expect a high level of scrutiny from regulators not only on Libra-related activities, but on all payment activities.”
The letters come just days after PayPal’s withdrawal from the Libra Association. The company did not give a specific reason, but many have speculated that it was a response to heightened pressure from regulators.
In the latest assault toward the project, Senator Brown of Ohio and Senator Schatz of Hawaii have urged three major payment processing firms in the Libra camp to rethink their involvement.
“We urge you to carefully consider how your companies will manage these risks before proceeding, given that Facebook has not yet demonstrated to Congress, financial regulators — and perhaps not even to your companies — that it is taking these risks seriously.”
Thus far, the other Libra members have remained committed to the project, which is still in its early stages — but there will be plenty of opportunity to confront these issues in the coming month.