In statements following their decision, the companies said that they were still interested in the cryptocurrency as a secure digital payment method, but have chosen to focus their resources on other projects for the time being. With this, the Libra Association now has only one payment partner, PayU, which is owned by Naspers Group (headquartered in South Africa).
Each of the companies released statements on the matter echoing similar sentiments, generally espousing that while they are supportive of new ideas to improve commerce, they have chose to drop their initial support for Libra.
On Tuesday (October 8), two senior U.S. Senators-Brian Schatz (D-HI) and Sherrod Brown (D-OH)-wrote letters to the CEOs of Visa, Mastercard and Stripe in order to share their "deep concerns" about Libra and the Libra Association because important questions about the risks posed by this project "remain unanswered".
Notably, none of these five companies have rejected the possibility of working with the Libra Association in the future.
These announcements happen just days after news spread that regulators were interested in meeting with Facebook CEO Mark Zuckerberg to talk about Libra and discuss the Association's motives, as BeInCrypto previously reported. France and Germany have vowed to block Libra altogether.
Amid heavy regulatory scrutiny from governments around the world, Facebook's ambitious plans for Libra have begun to come apart at the seams.
What do you think about another set of companies leaving Libra?
The departures on Friday came after USA senators sent letters to several financial firms noting that they could face "a high level of scrutiny from regulators" if they participated in the new currency plan.
Even though it has lost major backers, Facebook is clearly not ready to give up yet.
Facebook's head of the project, former PayPal executive David Marcus, cautioned on Twitter against "reading the fate of Libra into this update", although he acknowledged "it's not great news in the short term". Yet, this upcoming hearing will be his first appearance before Congress since past year April. Several other large companies have announced their departures from Libra.