US Warns Visa Mastercard to tread carefully! US warns Visa Mastercard and others, including Stripe, to tread carefully regarding the Libra Association. This follows the very public exit of Paypal from the association.
The Libra Association is no stranger to government pressures – but now, corporations are getting a taste of the pressure that the Libra Association has been undergoing. Letters sent by two US Senators, Brian Schatz (D-Hawaii) and Sherrod Brown (D-Ohio), were sent to San Francisco-based online payment processor Stripe Inc., and finance giants Visa and Mastercard. Part of the letter reads:
“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.”
The risks referenced include those that pose a danger to “consumers, regulated financial institutions, and the global financial system.” The letters are just another stumbling block that has been put up by the US Government after it, the government, declared a moratorium last summer via Maxine Waters, the US Congress Chair of the House Financial Services Committee.
Meanwhile, Paypal has remained mum as to the reason why they left the Libra Association. Their statement reads:
“Facebook has been a longstanding and valued strategic partner to PayPal, and we will continue to partner with and support Facebook in various capacities.”
Most have assumed that Paypal has cut its ties with the Libra Association for the lack of followthrough and engagement, as well as the association’s relationship with increasingly scrutinizing government agencies.
What do you think? We’re witnessing an interesting saga emerging – crypto has allowed massive tech and finance giants to potentially disrupt and challenge established financial hegemonies – what will governments do as a response? Let us know what you think on our Facebook page!
