PayPal Withdraws Support for Facebook’s Libra Cryptocurrency
upstart writes in with a submission, via IRC, for SoyCow1337.
PayPal withdraws support for Facebook's Libra cryptocurrency
PayPal has decided to withdraw from the Libra Association, the 28-member nonprofit organization formed in June 2019 to oversee the cryptocurrency's creation and eventual consumer rollout.
The company doesn't cite a specific reason, saying only in a statement to The Verge that it decided "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."
[...] a report published by the Financial Times yesterday said PayPal had begun distancing itself from the project amid increasing regulatory scrutiny. The company reportedly signaled its intention to skip a meeting in Washington, DC scheduled for today, and the FTreports that at least one primary concern for PayPal has been the lack of attention Facebook executives have paid to Libra's considerable backlash. Another key concern is how the platform will combat money laundering activity.
[...] Losing PayPal does not necessarily signal the eventual unwinding of Libra, but the company was a major financial player, alongside existing members like Mastercard and Visa, of the Libra Association. Facebook's blockchain chief David Marcus, who oversees Libra and Facebook's companion digital wallet app Calibra, was also a former PayPal president prior to running Facebook Messenger for the social network.
Losing PayPal, in that context, is not a great sign for the health of the project. The Wall Street Journal also reported earlier this week that both Mastercard and Visa, as well as digital payment platform and processor Stripe, were also considering withdrawing from the association over similar money laundering concerns. It's unclear if fellow Libra Association member eBay, from which PayPal was spun out in 2015, plans to continue participating.
Related: Visa, Mastercard Reportedly Reconsidering Support For Facebook's Libra
Read more of this story at SoylentNews.