PayPal has announced they will no longer be supporting Facebook’s blockchain technology project Libra. They had supported the venture since its founding in June of this year. Facebook is now facing some major challenges as numerous premier payment companies are reconsidering their involvement with Facebook’s cryptocurrency venture, set to be released in 2020. Last week, Visa and Mastercard announced they are reconsidering their involvement in Libra following backlash from US and European government officials.
There was no specific reason given for PayPal’s opting out of the Libra Association, but this morning the company stated, “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.” Governments around the world have been aggressively opposed to Libra in fear that they will run around the existing financial services and ignore standard regulations. You can read more about Facebook’s Libra project and the Libra Association in this article.