PayPal drops out of Libra, Facebook’s payments project

PayPal officially drops out of Facebook's Libra project

PayPal withdraws from association overseeing Facebook's Libra cryptocurrency

While losing PayPal certainly doesn't bode well for Libra, there are still plenty of high-profile companies in the Libra Association - including the likes of Visa, Mastercard, Uber, Spotify, Vodafone, eBay, and others.

"We remain supportive of Libra's aspirations and look forward to continued dialogue on ways to work together in the future", PayPal said in a statement.

Pioneering digital payments firm PayPal has said it will no longer be part of an alliance meant to oversee the Facebook-backed Libra cryptocurrency, which has come under attack by regulators.

"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", a spokeswoman for PayPal, Amanda Coffee, wrote in an email on Friday. Federal Reserve Chairman Jerome Powell said this summer that libra raises "serious concerns regarding privacy, money laundering, consumer protection, financial stability".

Time will tell if Libra's other partners end up making the same call.

Hours before Paypal's announcement, Apple CEO Tim Cook spoke with the French newspaper Les Echos, characterizing Facebook's plans to launch a cryptocurrency as a blatant power grab while shutting down any notion that Apple might be considering launching a digital currency of its own. Before Libra was unveiled, the companies signed nonbinding letters of intent to explore joining the association. Facebook has been a longstanding and valued strategic partner to PayPal, and we will continue to partner with and support Facebook in various capacities.

Mastercard, Visa and other financial partners enlisted to oversee Libra are reportedly having second thoughts as regulators unleash ire on the project and dig for information from members of the association.

The group said in a tweet that it will hold its first Libra Council meeting in 10 days and will be sharing updates following that, including "details of the 1,500 entities that have indicated enthusiastic interest to participate. We're better off knowing about this lack of commitment now, rather than later", Libra Association said in a statement.

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