PayPal first to leave Facebook’s Libra Association amid regulatory concerns

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PayPal announced that it would leave the Libra Association, making it the first member to exit the group tasked with managing the Facebook-lead effort to build a global digital currency called Libra.

The U.S. payment processing company said it would no longer participate in the group and would focus on its own business instead. “We remain supportive of Libra’s aspirations and look forward to continued dialogue on ways to work together in the future,” PayPal said in a statement to Reuters.

The Geneva-based Libra Association told Reuters in a statement that it was aware of challenges ahead of it as it attempted to “reconfigure” the financial system.

“The type of change that will reconfigure the financial system to be tilted towards people, not the institutions serving them, will be hard. Commitment to that mission is more important to us than anything else. We’re better off knowing about this lack of commitment now, rather than later,” the association said.

Facebook announced its cryptocurrency plans earlier this year. However, skeptical regulators quickly took issue with the project. Facebook reportedly could push back Libra’s launch to deal with regulatory concerns.

Additionally, Visa and Mastercard are reportedly reconsidering involvement in Libra, as they don’t want to attract regulatory scrutiny.

After PayPal’s exit, the association has 28 members, including Uber, Lyft and Spotify.

Source: Reuters