By Davis Byrne (US)
The US regulators are putting great pressure on the Mastercard, eBay, Visa, Mercado Pago, and Stripe to leave the Libra. These giants companies have invested in Facebook’s blockchain project but they seem to be no more partners due to the strict government policies.
The month of October is very tough for the Libra as a very big company called PayPal left the arena on Saturday. This caused a great shock to Facebook. Following this, the other four companies are being threatened by the US Senators to abandon the Libra Project. But still, there is no official confirmation of this parting.
The letters to the Companies to leave Libra project
The US regulators are keeping their eyes about every move of Facebook’s cryptocurrency and posed serious problems for it in the future. Recently, the two senators Brian Schatz and Sherrod Brown have warned the firms backing up this project to leave the field and threaten that Libra can face even more problems in the future.
They also pressurized that there will start new scrutiny for these firms who are supporting this cryptocurrency. This can put the existence of these companies in danger.
Also read:The senators said in the letter:
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.
Reaction from the Crypto Community
There came a strong reaction from the crypto community on this initiative of the US lawmakers and some passed even negative comments about the government.
Gabor Gurbacs, director of Digital Assets Strategy at VanEck stated in his tweet that the companies are being threatened to leave the Libra project and shared the letter that is written by the senators to the firms.
> This is the type of letter executives at @stripe, @Mastercard and @visa (former @Libra_ members) have received.
> Many executives may have chosen not to experiment and innovate in order to avoid regulatory pressure!Sad!
> America can do better!
> Source: https://t.co/M36bkEKJU9 pic.twitter.com/kF3AXf9Xvd— Gabor Gurbacs (@gaborgurbacs) October 12, 2019
Gabor also made focus on the point that America should embrace the Bitcoin and blockchain industry. This will lead to open many doors for traders and investors.
He said:
America should embrace #Bitcoin and distributed ledger technology. Trillions of dollars in potential value may be unlocked in capital markets and across various industries. This technological revolution is happening. The question is who will fully embrace it and benefit?!
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