Update: PayPal has officially withdrawn from the Libra association. In a statement the company said:
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
It added it’s still supportive of Libra’s aspirations.
Internet payments giant PayPal is reportedly about to withdraw from Facebook’s cryptocurrency project, even though it’s one of the Libra Association’s founding members.
According to a report published by the Financial Times PayPal representatives didn’t attend an important meeting in Washington where growing regulatory scrutiny of Libra was to be discussed. PayPal was reportedly the only member that didn’t attend the meeting, people “familiar with the event” told the FT.
The news outlet’s sources claimed the online payments giant is concerned Facebook hasn’t done enough to address regulators’ concerns, specifically those related to money laundering. The FT cited someone close to the payments giant saying:
[Payments] companies don’t want that [regulatory scrutiny] to bleed into their businesses.
PayPal may, nevertheless, rejoin the project at a later date, the source said. Notably, Facebook’s Libra project is being led by a former PayPal executive, David Marcus. Marcus has last month argued Libra doesn’t threaten the monetary sovereignty of nations.
The Financial Times has in the past reported that some of the Libra Association’s founding members – including Visa, Mastercard, and Booking Holdings – were considering quitting the project because of government pressure.
Featured image by Rami Al-zayat on Unsplash.
