It’s been revealed that PayPal dropped support for Facebook’s project Libra.
PayPal seems to have grown concerned about the backlash against the digital asset Libra but it’s also worth noting that the company did not cite any specific reason for the fact that it dropped support for this project.
More entities left the Libra Association
More than that, eBay, Stripe, Visa, and Mastercard have all done the very same thing. They revealed that they are leaving Facebook’s Libra Association.
Facebook’s head of blockchain development David Marcus noted that the tech giant’s corporate members weighed the effects of sticking to this extremely controversial project.
In the beginning, Libra received a lot of praise, and the project was surrounded by excitement, and then, the controversy became deeper.
Brad Garlinghouse said that Facebook drew all this upon itself, and this is why there are regulation-issues these days.
Special thanks to @Visa and @Mastercard for sticking it out until the 11th hour. The pressure has been intense (understatement), and I respect their decision to wait until there’s regulatory clarity for @Libra_ to proceed, vs. the invoked threats (by many) on their biz.
— David Marcus (@davidmarcus) October 11, 2019
More and more concerns grow around Libra
In statements shared with the Financial Times, an eBay representative stated the following:
“We highly respect the vision of the Libra Association; however, eBay has made the decision to not move forward as a founding member. At this time, we are focused on rolling out eBay’s managed payments experience for our customers.”
On October 8, Senators Sherrod Schatz and Brian Brown issued ominous letters to the CEOs of Visa, Mastercard, and Stripe noting that Libra’s issues could become their own.
“Facebook appears to want the benefits of engaging in financial activities without the responsibility of being regulated as a financial services company.”
More than that, it’s been said that “You should be concerned that any weaknesses in Facebook’s risk management systems will become weaknesses in your systems that you may not be able to effectively mitigate.”
On the other hand, not everyone sees Libra as a dangerous project.
For instance, The French billionaire Xavier Niel said that Facebook-led stablecoin Libra would exist together with thousands of other cryptos.
