PayPal has withdrawn from the Libra Association and as a result, other founding members are beginning to show signs of hesitation when it comes to signing on the project, reported The Block.
BBC reported that PayPal has decided to give up its collaboration with the Libra Association in an effort to prioritize its main business.
PayPal however still hopes to support Facebook’s efforts to launch Libra. It also added that it just cannot commit to joining the force to drive the digital currency as of now, but the company is open to joining the project again in the future.
The Libra Association postponed Libra’s launch until further notice due to regulatory difficulties in many countries.
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PayPal was one of the 28 founding members of the Libra Association. Other members include Visa, Uber and Mercy Corps.
The Libra Association said it understands PayPal’s decision and also further stated that it understands the challenges behind undertaking the Libra project and the ways in which it will revolutionise and change global financial systems.
PayPal Withdraws from Libra
Financial Times reported last week that PayPal did not attend the meeting with other members of the Libra Association in Washington DC, USA.
The focus of the meeting was to discuss ways to address the regulatory difficulties of financial regulators in many countries.
On 2 October, The Wall Street Journal reported a rumor, saying that Visa and Mastercard were likely to withdraw themselves from the project. as well.
Facebook has 2,400 million active users around the world on its platform. The revenue of the social media giant is mainly from targeted advertising.
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