Banking News

PayPal steps back from Facebook’s Libra

PayPal steps back from Facebook’s Libra

(4 October 2019 – Global) PayPal has announced it will no longer be participating in Facebook’s Libra project amid concerns the social media giant was not addressing regulators’ concerns.

In a statement, PayPal said it 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".

"We remain supportive of Libra’s aspirations and look forward to continued dialogue on ways to work together in the future. Facebook has been a longstanding and valued strategic partner to PayPal, and we will continue to partner with and support Facebook in various capacities.”

PayPal’s departure comes following reports from the Wall Street Journal that Visa and Mastercard are also reconsidering their involvement in the digital currency project over worries about the regulatory and political response.

Competition watchdogs at the European Commission have already begun probing potential anti-trust issues relating to Libra, while the US Federal Reserve and other central banks have expressed concerns over the threat posed to financial stability and monetary sovereignty.

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