PayPal Leaves Facebook’s Libra Crypto Project

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Date: 05 – October – 2019

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Yesterday PayPal confirmed that they were stepping down from backing up Libra, the cryptocurrency project of Facebook, the first foreshadowing of this was their absence in a meeting of Association members in Washington.

 

Later this month the 28 founding members of the Libra Association,  [the group of companies assembled by Facebook to oversee the cryptocurrency] will be requested to reaffirm their support to the Libra project, so far, the companies had only signed nonbinding letters of intent to explore joining the project.

 

It’s not a surprise that some of these companies are having second thoughts about baking up the Libra Project, since many regulators and governments have expressed their concerns and opposition to the project, like the finance minister of France, Bruno Le Maire who has said that “Under the current conditions, we should refuse the development of Libra in the EU.” 

 

Libra Association, said in a statement that “We recognize that change is hard, and that each organization that started this journey will have to make its own assessment of risks and rewards of being committed to seeing through the change that Libra promises.”

 

PayPal said in a statement that the reason for ending its participation in the Libra Association was to focus on advancing their existing mission and business priorities, and added that “Facebook has been a longstanding and valued strategic partner to PayPal, and we will continue to partner with and support Facebook in various capacities.”