One week after PayPal exited, within a day of October 11th, Visa, MasterCard, eBay, Stripe and Mercado Pago fled the league.

Libra has lost the major financial payment institutions in the league, will there be a future?

According to foreign media The verge, Visa, MasterCard, eBay, Stripe and Mercado Pago have withdrawn from the Libra Alliance, which is only one week away from PayPal, Libra,The global digital currency alliance, which consists of 28 companies including finance, e-commerce, blockchain, and the Internet, has nearly collapsed. The remaining 22 companies are venture capital, Internet companies, and non-profit organizations. the Lord.

This is a big blow to Facebook’s expected plan, previous analysis, Facebook is facing the problem of a decline in the number of daily and monthly users. In search of new traffic and increased user stickiness, Facebook regained the “pay dream” – issuing cryptocurrencies, and in the Libra white paper, Facebook mentioned the ability to provide financial services to at least 500 million users who have difficulty accessing banking services. By using Libra, a closed loop from advertising to e-commerce to social networking. Everything looks good, but Libra may be a “disaster” for the banking industry, especially the central bank.

Unlike Bitcoin, Libra links cryptocurrencies to certain assets, such as government-issued currencies and bonds, and the currency is relatively stable; there is no limit on the number of issues, which means that over-the-counter situations will occur. It will have an impact on the supply of central bank goods. If the cryptocurrency, such as Libra’s currency size continues to expand, it will adversely affect the bank’s main business “sucking deposits and loans”, and the scale of bank loans will be reduced.

On the other hand, it is a token represented by Libra. The general stability and security issues, and money-related matters, safety has always been the first, money laundering, tax evasion, ViolationPrivate, undermining financial stability, affecting the effectiveness of monetary policy… The outside world, including central banks, has many concerns about the safety and risk of Libra.

Because Libra is directly linked to currencies such as the US dollar, the euro, and even government bonds, credit is determined by the business practices of members of the alliance and is outside the financial regulatory mechanisms of the central bank,national regulators This has been directly reflected by , and the regulation of Libra cryptocurrency has been shrinking. Just last month France and Germany said they wanted to stop Libra from operating in Europe and develop a public cryptocurrency. US Federal Reserve Chairman Powell said: “The project cannot be promoted until privacy, money laundering, consumer protection and financial stability are resolved.”

It is precisely because of regulatory strictness that PayPal, Visa, MasterCard, eBay, Stripe and Mercado Pago have fled the alliance. A spokesperson for Visa told The verge: “Visa decided to withdraw from Libra at this time, we will continue to evaluate, and ultimately will depend on a number of factors including Libra’s ability to achieve all necessary regulations.” eBay, Stripe said it will focus on its original Business – Managed payments and e-commerce. MasterCard declined to comment.

The exit of major third-party payment services apparently has had a significant impact on Libra, which will shake Libra’s trading base.

However, this does not affect Libra’s continued advancement of its plans. Libra’s first formal meeting is scheduled to be held in Genevain1 Held on October 14.