Vodafone has become the latest in a growing list of global companies to withdraw from Facebook’s Libra digital currency project.

The Libra Association confirmed that the telecoms giant has exited the collective following an exodus of major payments and financial organisations last year.

Early backers including Mastercard, Visa, eBay, Booking Holdings and Mercado Pago followed payments firms PayPal and Stripe in abandoning the project, amid fears from regulators and governments over the potential for a digital currency to upend the global financial system and fuel money laundering.

In October, the Libra Association - an independent body based in Geneva established to oversee Facebook’s plans for the Libra digital currency and Calibra digital wallet - confirmed that 21 members has signed up to its charter.

The formal announcement of a governance structure and charter for the digital currency project confirmed the continued membership of Vodafone and tech giants Uber, Spotify.

Vodafone said it had left the consortium on amicable terms and is planning to commit the resources previously set aside for the Libra project to its proprietary M-Pesa digital payments service, which the company is planning to expand beyond the six African countries in which it currently operates.

Dante Disparte, head of policy and communications at the Libra Association, confirmed the news and commented: “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 association is continuing the work to achieve a safe, transparent, and consumer-friendly implementation of the Libra payment system.”

A spokesperson for Vodafone said: "Vodafone Group has decided to withdraw from the Libra Association. We have said from the outset that Vodafone’s desire is to make a genuine contribution to extending financial inclusion.

They added: "We remain fully committed to that goal and feel that we can make the most contribution by focusing our efforts on M-Pesa. We will continue to monitor the development of the Libra Association and do not rule out the possibility of future co-operation.”

Share Story: