PayPal Is Leaving Facebook's Cryptocurrency Union

Business | October 6, 2019, Sunday // 14:44|  views

PayPal's global payment system is pulling out of the Libra Association, created to launch the future Facebook cryptocurrency of the same name.

PayPal was one of the 28 corporate members of the association. All founders were expected to invest a minimum of $ 10 million to fund the operating costs of the project. However, these investments have not yet been made. This week The Wall Street Journal reported that Visa, Mastercard and other financial partners in the association are also in the process of reviewing  their participation after a government response. They have received letters from the Treasury asking for a full review of their anti-money laundering programs and how Libra's digital currency will fit into them. However, when member companies of the association asked Facebook for information on these issues, they did not receive detailed answers.

So Mastercard and Visa have reconsidered participating in Facebook's cryptocurrency.

PayPal, however, is the first partner to take a radical step away from the project. “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. Withdrawing the company could mean the association is beginning to break up, observers commented.

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Tags: PayPal, visa, MasterCard, libra, cryptocurrency, Facebook


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