According to the latest report, PayPal is no longer a member of the nonprofit Libra Association, an organization of 28 members formed in June this year to spearhead Facebook’s proposed cryptocurrency, Libra.
Although the reason for PayPal’s decision of pulling out from the Libra Association is out of sight but the news comes out when PayPal failed to show up in a meeting that was set on Thursday, October 03. Notably, the meeting was supposed to gather all 28 members of the Libra association to discuss the mechanism of Libra and the possible strategies to zone out Libra from the regulatory uncertainties.
As per the reports, both, a spokesperson from PayPal and Libra association confirmed that the Payment giant officially withdrew itself from Libra Association. PayPal told media, the “firm made the decision to forgo further participation” in Facebook’s upcoming crypto project and said that they’re rather focusing on “advancing their existing mission and business priorities”.
As an American company, PayPal Holdings Inc. serves its payment transfer solutions worldwide. Interestingly, while PayPal unfriends Facebook’s Libra cryptocurrency, its former president, David Marcus added Facebook in a list of his close friends. Being the head of Calibra, the crypto wallet of Libra coin, David Marcus is actively pushing Libra development forward.
However, the news of PayPal giving up on Libra was around the web for quite some now. Besides PayPal, Visa and Mastercard were two other payment giants on the hype that were reportedly planning to drop out Libra Association. But as for now, PayPal is the only giant officially withdrew from Libra Association. Moreover, a spokesperson of the Libra Association also confirmed media, stating, “We can confirm that PayPal has notified us and intends not to join,”. As per FT news media, PayPal is less confident on Facebook succeeding in a battle of regulatory uncertainty against Libra. The source familiar with the matter told the FT;
“It doesn’t seem that there was a lot of pre-work done with regulators. [Payments] companies don’t want that [regulatory scrutiny] to bleed into their businesses.”
Facebook’s attempt to entering the financial industry certainly attracted the ire of regulators, policymakers and authorities of central banks. Following Facebook’s ongoing battle with regulators, PayPal refutes to support Facebook in its vision of serving financial solutions to 2 billion unbanked and underbanked.
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