Vodafone is the latest big player to drop its interest in the Facebook’s controversial Libra cryptocurrency project.

Vodafone joins Mastercard, PayPal, Visa, Mercado Pago, eBay, Stripe and Booking Holdings in withdrawing from the controversial project — and it is the first company to exit after the Libra Association was formed in 2019 October 2019, coindesk reported on Tuesday.

The companies reasons for exiting the project is mainly based on concerns about heightened regulatory scrutiny.

Facebook libra

“We can confirm that Vodafone is no longer a member of the Libra Association. 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,” the Libra Association said in a statement.

“The Association is continuing the work to achieve a safe, transparent, and consumer-friendly implementation of the Libra payment system.”

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Despite top-notch firms pulling out, Facebook and 20 partner organisations formally joined the digital currency Libra project in Geneva in October. The Libra Association said that more than 1,500 entities have expressed an interest in joining the digital currency project.

Several US senators have opposed Facebook’s digital coin, arguing that the social networking giant has been irresponsible with user data privacy. They have even called the digital cryptocurrency Libra “delusional” and “dangerous”.

Libra Project Struggling

Facebook CEO Mark Zuckerberg testified before Congress in October about Libra, defending the idea, but acknowledging the struggles left to overcome. Libra has failed in its current form, according to the President of Switzerland.

In a media interview, Swiss President and Finance Minister Ueli Maurer stated that Libra does not have a chance of being successful “because the basket of currencies that is deposited in this currency is not accepted by the national (central) banks.”

“The project in this form has actually failed,” Maurer was quoted as saying.

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The Libra project, which is still in development, aims for the launch of its first version this year.

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