British telecom conglomerate Vodafone has become the eighth company to pull out of the Libra Association, the governing council for the Facebook-created global digital currency initiative. Vodafone joins PayPal, Mastercard, Visa, Mercado Pago, eBay, Stripe and Booking Holdings in withdrawing from the controversial stablecoin project, and it is the first company to exit after the association was formally organized in October 2019.
The payment companies likely left due to concerns about increased regulatory scrutiny, which several U.S. senators threatened.Vodafone and Libra both confirmed Tuesday the company is no longer part of the consortium. Vodafone will dedicate resources previously intended for Libra to its well-established and successful digital payment service M-Pesa, which the company plans to expand beyond the six African nations currently served.
“We have said from the outset that Vodafone’s desire is to make a genuine contribution to extending financial inclusion,” the spokesperson told CoinDesk. “We remain fully committed to that goal.”
The Libra Association confirmed Vodafone’s departure to CoinDesk.
"Although the makeup of the Association members may change over time, the design of Libra’s governance and technology ensures the Libra payment system will remain resilient,” Dante Disparte said.
Thanks for reading.
Kasezga Tembo, CIO, Zog Capital