Last week saw Financial Times issue a report alleging that PayPal was about to leave Facebook’s Libra crypto project. Now, it would appear that this report was telling the truth. Specifically, PayPal is now confirmed to have left the Libra Association group.
PayPal leaves Libra Association
Facebook sought to attract a large number of notable organizations when it first went live with its Libra project. Furthermore, this project sees Facebook attempt to breach the mainstream payments market. As such, one of the most highly published members of Facebook’s “Libra Association”.
Nevertheless, PayPal has now left the Libra Association. PayPal’s confirmation of leaving the Libra Association comes as Facebook’s Libra project is already facing some tough headwinds. For example, both France and Germany have threatened to block Libra within Europe.
Moreover, both Facebook and the Libra Association has also seen some roadblocks within the US. Regulators appear to be wary of Facebook’s attempt to spearhead a cryptocurrency, which some have said could pave the way for wider crypto regulations.
Nevertheless, this widespread political aversion to Facebook’s Libra project has reportedly led some of the Libra Association’s members to consider their involvement. Furthermore, recent reports allege that Facebook has been unable to quell some of the payment giant’s worries.
Specifically, PayPal is said to have raised some concern regarding potential money laundering schemes. Now, a fresh series of reports say that Facebook has failed in meeting PayPal’s concerns.
PayPal confirms leaving Libra Association
As such, PayPal is now ending its involvement with the Libra project. According to an official statement sent to ABC News by PayPal:
“PayPal has made the decision to forgo further participation in the Libra Association at this time and to continue to focus on advancing our existing mission and business priorities as we strive to democratize access to financial services for underserved populations.”
Nevertheless, PayPal says that the company will “remain supportive of Libra’s aspirations and look forward to continued dialogue on ways to work together in the future.” Moreover, the report also says that Facebook has been a “valued strategic partner to PayPal” and that the firm is open to working together again.
Dante Disparte, who is Libra’s head of policy and communications, went ahead to release an official statement on the matter. Furthermore, he reportedly told ABC News that people are better off knowing about PayPal’s lacking commitment “now, rather than later”.
As such, all eyes will likely be fixed on the Libra Association in the coming days and weeks. It is not entirely unlikely that the Libra Association will see further defections.
Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the cryptocurrency industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.