Facebook has suffered another blow to its cryptocurrency Libra project after Mastercard, eBay, Visa and Stripe – a payments platform, confirmed they would not be members of the governance organization for Libra last Friday.
PayPal had made a similar announcement in early October.
The firms formed part of a group of more than two dozen companies and non-profit organisations initially touted as “founding members” of the Libra Association.
Libra, developed by Facebook, was intended to have a government body that is an independent overseer of the cryptocurrency.
"Mastercard has decided it will not become a member of the Libra Association at this time," a spokesperson for the company said in a statement provided to CNN Business, adding that the company would continue to monitor how Libra progresses.
In Facebook’s pitch for the move, it claimed that Libra could improve access to financial services, bring online payment transactions to parts of the world that currently have no access.
Governments in France and Germany cautioned that the cryptocurrency could undermine state sovereignty by helping people to abandon national currency in time of crises and complicating a country’s ability to manage the economy.
The French Government said it would block Libra within Europe.
Since Libra’s announcement, the project has faced heightened scrutiny and resistance from regulators. Fears emerged about the implications for user privacy and that the digital currency could be used to fund illicit practices such as terrorism.