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PayPal Pulls out of Facebook’s Libra Association

In addition to troubles Facebook has been going through over sceptical regulators around the world, PayPal Holdings Inc. has pulled out of the Libra Association. PayPal, among other financial companies, was under Facebook’s Libra Association to help the company make its dream of building a global digital currency, Libra possible.

In a statement released on Friday, PayPal stated that it is pulling out to instead focus on its core business, but they still remain supportive of Libra’s aspirations.

“We remain supportive of Libra’s aspirations and look forward to continued dialogue on ways to work together in the future,” PayPal said in the statement.

The company has faced scrutiny to the doubtful regulators around the world who seem not to buy the idea of a Facebook-owned cryptocurrency.  Facebook had initially planned to launch its cryptocurrency in Mid 2020, but reports have surfaced, stating the company is pushing back the launch of Libra to tackle regulatory concerns.

Apart from PayPal, Visa, Stripe, and MasterCard have also been reported reconsidering their involvement in the Libra Association to wage away regulatory scrutiny. PayPal’s exit reduces the number of members under the Libra Association to 28 as per now.

Last month, some European ministers threatened to ban Libra in their respective countries if the company does not comply with regulatory requirements.

France said it would block Libra due to the risks it poses to consumers and to uphold the government’s monetary sovereignty, which has not been appropriately addressed.

Germany also supported the move stating “no private entity can claim monetary power, which is inherent to the sovereignty of nations.”

Image/ GettyImages

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Alvin Wanjala

Alvin Wanjala has been writing about technology for over 2 years. He writes about different topics in the consumer tech space. He loves streaming music, programming, and gaming during downtimes.

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