PayPal Withdraws Support From Libra

In what will come as a massive blow, US payment services PayPal announced that it was pulling out of Facebook’s cryptocurrency project, Libra. After weeks of whispers and rumours, PayPal became the first company to ‘pull the chain’ on the cryptocurrency train.

News portal Reuters quoted PayPal as saying, “We remain supportive of Libra’s aspirations and look forward to continued dialogue on ways to work together in the future.” In response Libra said, “The type of change that will reconfigure the financial system to be tilted towards people, not the institutions serving them, will be hard. Commitment to that mission is more important to us than anything else. We’re better off knowing about this lack of commitment now, rather than later.”

Earlier this week, we had reported that Visa, Mastercard and a few other companies were reconsidering their involvement in the project after backlash from US and European regulators. While the social media giant has called for a unified front on the project, the payment companies do not want to be seen as boosting the project publicly.

David Marcus, who’s heading the Libra project said, “Official 1st wave of Libra Association members will be formalized in the weeks to come” and added, “Change of this magnitude is hard and requires courage + it will be a long journey. For Libra to succeed it needs committed members, and while I have no knowledge of specific organizations plans to not step up, commitment to the mission is more important than anything else.”

Libra has been in mired in controversies ever since Facebook announced the project.

In June this year, Maxine Waters, a leading US House lawmaker had called for Facebook to halt the development of its project Libra. In a statement she had said, “Facebook has data on billions of people and has repeatedly shown a disregard for the protection and careful use of this data. With the announcement that it plans to create a cryptocurrency, Facebook is continuing its unchecked expansion and extending its reach into the lives of its users.”

Featured Image Credit: PayPal