PayPal Abandons Launch of Facebook’s Cryptocurrency Libra
Following the announcement that Facebook would be launching its own digital currency, the Libra, PayPal has decided it will be pulling out of the alliance that originally agreed to back the launch.
Last week, the payments firm announced it would be retreating from the 28-strong alliance that had promised to back Facebook’s launch of the Libra, and its digital wallet, Calibra. PayPal has not explained why it had made the decision.
Perhaps its because regulators in Europe, specifically France and Germany have vowed to block the digital currency, perhaps it’s because it has little confidence in the efficacy of the Libra.
According to The Block, a PayPal spokesperson said PayPal “made the decision to forgo further participation," but remains supportive of Libra's goals and will continue to explore how the two firms can work together moving forward.
"We remain supportive of Libra’s aspirations and look forward to continued dialogue on ways to work together in the future…Facebook has been a longstanding and valued strategic partner to PayPal, and we will continue to partner with and support Facebook in various capacities…” reads the statement.
In response, spokespeople for the Libra Association, made up of 28 companies and non-profits, including Visa, Uber and Mercy Corps, said it understands the difficulties ahead and reconfiguring the financial system may be hard but that it is committed to achieving said goal.
However, as it stands, Visa, Mastercard, and Stripe have also been reported as hesitant to sign official commitments to the Libra.