EBay and Stripe leave Facebook led digital currency Libra Association

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EBay and Stripe leave Facebook led digital currency Libra Association
EBay and Stripe leave Facebook led digital currency Libra Association

Libra is a permissioned blockchain digital currency proposed by the American social media company Facebook.

EBay and Stripe are leaving Libra Association, the entity managing the Facebook-led effort to build a global digital currency said, joining Paypal which exited the group just a week ago.

The currency and network do not yet exist, and only rudimentary experimental code has been released.

The plan is for the Libra token to be backed by financial assets such as a basket of currencies, and US Treasury securities in an attempt to avoid volatility. Facebook has announced that each of the partners will inject an initial US$10 million, so Libra has full asset backing on the day it opens.

The project, currency and transactions was to be managed and cryptographically entrusted to the Libra Association, a membership organization of companies from payment, technology, telecommunication, online marketplace and venture capital, and nonprofits.

“We highly respect the vision of the Libra Association; however, eBay has made the decision to not move forward as a founding member,” EBay said in a statement.

Facebook announced plans to launch the digital currency in June 2020 in partnership with other members of Libra Association, but the project quickly ran into trouble with skeptical regulators around the world.

France and Germany last month pledged to block Libra from operating in Europe and backed the development of a public cryptocurrency instead.