In a recent series of events, PayPal has announced its official withdrawal from the Libra association. The hints of PayPal pulling out of the association were clear enough. Financial Times reported that PayPal did not attend a meeting of 28 Libra supporters scheduled on the same day.
After PayPal refrained from attending the meeting, a spokesperson of the company confirmed its withdrawal, adding that despite the pull-out, PayPal remained ‘supportive’ of Libra. He said that the company still looks forward to holding dialogues on collaboration in the future with Libra Association:
“Facebook has been a longstanding and valued strategic partner to PayPal, and we will continue to partner with and support Facebook in various capacities.”
Even before the announcement of the official withdrawal of PayPal from Libra Association was made, rumors were rife that other backers were also planning to quit the association.
Not Enough ‘Pre-Work’ With Regulators
It has been widely speculated that the reason behind this wavering support could be Libra’s lack of ‘pre-work’ with the regulators since payment companies do not want the interference of regulatory scrutiny into their businesses.
It has further been very deciding for Libra that it has raised the eyebrows of a lot of lawmakers around the world with the rumors that it was trying to take hold of money from governments into its own hands, adding fuel to the fire.
Other key players which have reportedly been wavering in their support for Libra Association include names like Mastercard, Visa, and Stripe. Through these developments, Facebook has been trying to maintain its footing and ease tensions related to Libra. However, lawmakers continue to be in a state of doubt and the fate of Libra is still undecided.