US Senators ask Visa, Mastercard, and Stripe to reconsider their association with Libra

In a letter issued by two US senators, Sherrod Brown and Brian Schatz to the CEOs of payments firms VISA, Mastercard and Stripe, senators share their concern about the Facebook-initiated Libra project.

US senators, Sherrod Brown and Senator Brian Schatz said in the letter, “Public reporting suggests that potential Libra Association member companies have struggled to get sufficient details from Facebook about the management of significant risks that Libra may pose”.

Given the key questions remain unanswered about the risks the project poses to consumers, and the global financial system, senators have urged payment firms to carefully evaluate before considering to proceed.

Libra team is meeting the regulators to understand their concerns/ feedbacks and try to incorporate them into their design. However, Facebook is yet to demonstrate to financial regulators that they are taking these risks seriously.

Recently, PayPal a former association member in the Libra project withdraw its membership application citing concerns that continued participation may put them into the regulatory spotlight.