PayPal is the first company to drop out of Facebook’s cryptocurrency project saying it wants to focus on its current mission. According to, The Independent Mastercard and Visa are also reconsidering their involvement.
“PayPal has decided 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 democratize access to financial services for underserved populations,” read an email from Paypal.
SEE ALSO: Facebook unveils Libra cryptocurrency with a plan to bring crypto to the masses
Regulatory Concerns Intentions of Libra
Paypal’s exit indicates the company’s shift from Libra’s regulatory spotlight given that policy-makers in the US and Europe have continuously questioned Facebook’s intentions with its cryptocurrency venture.
Furthermore, French Finance Minister Bruno Le Maire referred to the cryptocurrency as a threat to monetary sovereignty. Besides, UK MPs warned that Facebook was attempting to “turn itself into its own country.”
Speaking on regulatory concerns and the exit of the said partners, Facebook confirmed that it is working with legitimate interests through driving conversations on the value of the digital currency.
“I can tell you that we’re very calmly, and confidently working through the legitimate concerns that Libra has raised by bringing conversations about the value of digital currencies to the forefront.” read a tweet from David Marcus, Co-Creator at Libra.
Facebook and other Libra partners will meet later this month to appoint its first board of directors. Also, the platform will announce the official first wave of Libra Association members in the weeks to come.
