According to news reports,CardLinx member MasterCard has followed Paypal, Ebay and Visa in terminating their involvement in Facebook’s Libra Cryptocurrency alliance. The moves are a surprise but not totally unexpected. Since its announcement, Libra had encountered strong resistance from national regulators as well banks, payment processors and consumer advocacy groups.
As The CardLinx Association predicted in its news flash prior to Libra’s announcement, the new alliance faced a very uphill battle. Facebook’s record of poor data security and recent mega-fines doomed the venture from the beginning. Libra was also plagued by lack of participation from any banks and payment processors like CardLinx members Fiserv/First Data, FIS, Capital One or UBS. With the major payment networks withdrawing their support, the future of Libra has become very unclear and it may likely collapse or substantially narrow its scope.