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US Lawmakers Warned Payment Giants Against Dealing with Libra
NEWS
October 09  |  2 min read

US Senators Urged Visa, Mastercard, and Stripe to Keep Away from Libra Project

The COIN360 Editorial Team

Two U.S. Senators have sent letters to payment giants Visa, Mastercard, and Stripe, directly warning them against proceeding with their participation in the Facebook-backed Libra crypto project.

Signed by Senator Sherrod Brown, the senior Democrat on the Senate Banking Committee, and panel member Senator Brian Schatz, these strongly-worded letters depict their authors’ deep concerns about the controversial nature of the Libra project:

“It is chilling to think what could happen if Facebook combines encrypted messaging with embedded anonymous global payments via Libra,” – the letter reads.

The Senators further urge their addressees to “be concerned that any weaknesses in Facebook’s risk management systems will become weaknesses in your systems that you may not be able to effectively mitigate” .

The letters also contain the following formulation which could be viewed as a direct written threat to Visa, Mastercard, and Stripe as members of the Libra project:

“If you take this on, you can expect a high level of scrutiny from regulators, not only on Libra-related payment activities, but on all payment activities,” – it reads.

As reported earlier this month, Paypal is allegedly reconsidering its involvement with the Libra project as well. Moreover, EU officials are also actively campaigning against Facebook’s cryptocurrency project.

Given the circumstances, Facebook CEO Mark Zuckerberg admitted that Libra has no clear launch timeframe at present. However, according to Ripple CEO Brad Garlinghouse this week, it is unlikely to be before 2023.