Ahead of Zuckerberg testimony, new setbacks for Libra

Ahead of Zuckerberg testimony, new setbacks for Libra
Mark Zuckerberg leaves a meeting with Sen. John Cornyn (R-Texas) on Sept. 19. Photo: Samuel Corum/Getty Images

Facebook CEO Mark Zuckerberg plans to testify on Libra, Facebook's proposed global cryptocurrency, on Oct. 23. — in the wake of Visa, Mastercard, eBay, Stripe and PayPal pulling out of the project.

The big picture: Visa, Mastercard and Paypal were the largest payment companies in Facebook's “Founding Members” group, or organizations that said it would back the Switzerland-based foundation that plans to manage the Libra cryptocurrency.

What they're saying:

I would caution against reading the fate of Libra into this update. Of course, it’s not great news in the short term, but in a way it’s liberating. Stay tuned for more very soon. Change of this magnitude is hard. You know you’re on to something when so much pressure builds up.”

— David Marcus, the Facebook executive overseeing Libra, tweeted on Friday

What to watch: Zuckerberg's testimony comes after “lawmakers, central bankers and regulators” have “expressed deep concerns” about the project, the Wall Street Journal reports.

  • Rep. Maxine Waters, chair of the House Financial Services Committee that Zuckerberg will testify in front of, has described Libra as “a new Swiss-based financial system” that is “potentially is too big to fail and could require a taxpayer bailout,” AP reports.

Go deeper: More companies drop out of Facebook-led cryptocurrency plan