PayPal Backs Out of Libra Association

 

 

 

 

Payment services giant PayPal announced Friday that it will no longer be participating in the Libra Association, CNBC reports. In a statement, PayPal said that it still support’s the Libra project’s goals, but plans to focus on its own business priorities for improving access to financial services:

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 democratize access to financial services for underserved populations.”

The announcement comes just days after reports that PayPal, Visa, Mastercard, and Stripe were all having second thoughts about signing the Libra Association’s proposed charter later this month. At the time, Stripe was the only one of the four companies to issue a statement detailing their support for the project.

The Libra Association was created by Facebook to serve as a governing body for its proposed Libra digital currency payment system. The group consists of 28 companies, including Facebook, who were all reportedly committed to investing at least $10 million for the association and efforts to promote Libra adoption.

U.S. Representative Sylvia Garcia reportedly told reporters that the PayPal decision shows that “something’s amiss” with the Libra project, and noted that she’s had concerns about how Facebook set up the Libra Association. According to Garcia, the company appears to have given itself the power to select those association members, and that could suggest that the organization may lack the independence Facebook initially promised:

“If I’m doing the inviting, then that’s controlling the entire agenda.”

Author: Ken Chase

Freelance writer whose interests include topics ranging from technology and finance to politics, fitness, and all things canine. Aspiring polymath, semi-professional skeptic, and passionate advocate for the judicious use of the Oxford comma.

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