On a statement last October 4, PayPal said that the company has pulled out its endorsement and ties with Libra Association. This is after the controversial Facebook cryptocurrency project’s compelling regulatory board review.
Prior to the withdrawal of support, Paypal was one of the 28 members of the Libra Association, a nonprofit organization formed to keep an eye on the launch of the cryptocurrency on the succeeding year.
While details of the company’s decision to cut ties with the association remain unclear, a representative from PayPal made it known that they still support Libra’s endeavors. Paypal added that they’re nevertheless open for talks and other ways to collaborate in the future.
Furthermore, PayPal clarified that they value Facebook as a key and longtime partner and they will continue to support and tie up with them in various projects. The company further explained that they waive future association with the project and will just concentrate on their own businesses.
Mastercard and Visa, also principal partners, are also said to review and reconsider their participation in the group. Apparently, they are not also into inviting scrutiny by the regulatory board. Facebook announced Libra in June, declaring that its cryptocurrency aims to serve billions of users worldwide by allowing them to financially transact through their various social media platforms such as Instagram, Messenger, and WhatsApp.
However, lawmakers all over the world began to make queries on Facebook’s intensions in establishing its own currency. The Finance Minister of France, Bruno Le Maire have reportedly said he will not allow Libra to do business in Europe. He believed that the project can be a threat to any country’s “monetary sovereignty”.
Some lawmakers even see Libra as an attempt by Facebook to create a country of its own. While these concerns were addressed by Facebook, the scrutiny continued.
With PayPal’s decision to depart from the project, Libra stated that they are looking forward to moving on and they will continue to discuss the cryptocurrency’s future during their meeting at Geneva next week.