The Libra Association and the whole existence of Facebook’s Libra project took a pretty strong hit today. PayPal has just officially withdrawn from the Libra Association. We reported earlier today that PayPal was thinking about leaving due to regulatory backlash and it seems that it finally happened.
Now, a spokesperson from PayPal affirmed that the company made the decision to stop participating in the project and to focus on its own project instead of democratizing finances on its platform.
According to the official statement, PayPal is still “supportive” of the Libra’s aspirations and it still believes in the potential of Facebook, but the partnership is no longer a reality. The Libra Association confirmed that PayPal indeed left the team after the announcement.
When the Libra project was first announced, several companies were eager to be a part of the project. However, the regulatory backlash was almost instantaneous and regulators and policymakers from several countries affirmed that they would ban the asset. Others, such as the U. S., did not look so eager to ban it, but they were also unconvinced about the potential versus the risks.
Now, on October 14, the launch partners of the Libra Association are going to join to formally sign an agreement. It seems that PayPal backed down before this final moment.
Dante Disparte, from the Libra Association, affirmed that the goal of the technology is to create a modern and secure payment network with low friction that could enable millions of people to participate in the financial world.
At the moment, there are no reports of other companies that are about to drop out as well, but this may happen yet.