PayPal Withdrew from Facebook’s Libra Digital Currency Project

Payment processor PayPal is withdrawing from the nonprofit governing Facebook’s cryptocurrency project Libra.

The company, which was one of the 28 corporate backers of Libra, announced the news on Friday.

Facebook’s Libra has been facing harsh scrutiny around the globe by regulators and lawmakers.

“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,” PayPal stated.

The company also added that it would continue to partner with the social media giant in the future.
Leading the Libra project is David Marcus who was once the president of PayPal.

Dante Disparte, head of policy and communications for the Libra Association, stated, “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.”

According to Federal Reserve Chairman Jerome Powell, Libra raises “serious concerns regarding privacy, money laundering, consumer protection, financial stability.”

According to a Wall Street Journal report this week, Visa, Mastercard and other financial partners that signed on are “reconsidering” involvement in Libra as well.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.