PayPal Bids Farewell to Libra
In a surprising move that has sent ripples through the digital currency community, PayPal has officially exited the Libra Association, the governing body behind Facebook’s ambitious cryptocurrency project. The announcement comes on the heels of PayPal’s conspicuous absence from a crucial meeting of Libra’s 28 backers on October 3rd.
A Stumble in the Pre-Work Phase
The Financial Times reported that PayPal’s no-show at the meeting raised eyebrows among industry insiders. According to a spokesperson from PayPal, the company remains supportive of Libra’s vision but felt the regulatory preparations were lacking. They stated, “There doesn’t seem to be a lot of pre-work done with regulators,” underscoring their concerns about the potential implications for their business.
The Ripple Effect: Who’s Next?
PayPal isn’t the only player feeling uneasy about the Libra project. Reports suggest that major payment processors like Visa, Mastercard, and Stripe are also reconsidering their commitment to the association, fearing regulatory scrutiny could negatively impact their operations. A source close to the situation hinted, “[Payments] companies don’t want that [regulatory scrutiny] to bleed into their businesses.”
Libra’s Ongoing Controversy
Since its inception, Libra has sparked a frenzy of debate among lawmakers worldwide, with critics arguing that a digital currency of this sort could undermine governmental control over money. Despite this, the Libra team is pushing forward, having revealed a roadmap for progress, including that their nodes are beginning to communicate with one another.
A Bright Side? Future Collaborations
Despite its withdrawal from the association, PayPal intends to keep the door open for future collaborations with Facebook. The spokesperson remarked, “We will continue to partner with and support Facebook in various capacities,” indicating that while they may not be in the Libra boat, they are still rowing alongside it.
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