Following speculation that several companies were having doubts over Facebook’s Libra cryptocurrency, PayPal has announced that it's withdrawing itself from the Libra Association, the non-profit governing body of Libra. PayPal has said that it’s still supportive of Libra’s aspirations but that it wants to focus on its own work for the time being.
It’s unclear why the firm backed out of Libra but it was reported earlier this week that several firms including Visa and Mastercard had serious reservations over the cryptocurrency since banks and governments all around the world started casting doubt on the project. Alongside Visa, Mastercard, and PayPal, Stripe was also considering its place in the Libra Association, however, all the firms except PayPal are still listed on the association’s website as members.
In a statement on the matter, PayPal 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.”
Reacting to PayPal’s decision, Dante Disparte, head of policy and communications for the Libra Association, said:
“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.”
While this news is a major blow for the Libra Association, the two entities could come back together again in the future if things become less turbulent in terms of regulation. PayPal said that it is supportive of the aims that Libra is trying to achieve and that it will partner with Facebook in the future.