The cryptocurrency project of Facebook, Libra, got immense attention from regulatory bodies. Leaprate last reported that the cryptocurrency launch may be delayed some time in 2020. This is not what Zuckerberg wanted, but at the end Facebook vouched for complying with all regulatory issues before launching Libra.
But what happens when Libra’s partners start to leave? PayPal is the first company that decided to leave the Libra Association. The stated reason? Regulatory heat from all over the globe.
As Leaprate has previously reported, the Libra project is supported by 28 (now 27) companies that have each pledged around $10m to join the Association. While PayPal has not given an official reason for leaving Libra, the company came up with the following official statement:
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 as we strive to democratise access to financial services for underserved populations.
The latest report on the news comes from The Guardian. PayPal went on to elaborate that Facebook is an important strategic partner for the company and will continue to be one in the future.
As PayPal leaves the project, there were rumours that other companies have had second thoughts about Libra and their participation in it. According to a Wall Street Journal news report from last week, Visa and Mastercard are also pondering on their position in the project, just before an important meeting with the representatives from all the companies involved in Libra that is taking place on October 14th, 2019.
However, the involvement of companies for now is only provisional and intentional, as Visa’s chief executive pointed out that no company has officially joined yet. This decision will be taken considering many factors, one of which is whether Libra will satisfy all regulatory requirements.