PayPal withdraws from Facebook’s Libra currency project

Financial giant PayPal has announced it has decided to withdraw all of its involvement with Facebook’s proposed digital currency Libra.

First touted by the Financial Times, the firm released a statement stating it will “remain supportive of Libra’s aspirations” despite pulling its involvement.

The statement read: “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 democratise access to financial services for underserved populations.”

“We remain supportive of Libra’s aspirations and look forward to continued dialogue on ways to work together in the future. 

“Facebook has been a longstanding and valued strategic partner to PayPal and we will continue to partner with and support Facebook in various capacities.”

Following Paypal’s decision, Libra’s official twitter account referred to the difficulties of developing its network describing the project as “a journey, not a destination.”

The digital currency has faced scrutiny from both regulators and governments since its first reveal, including involvement from the US congress who demanded a halt to Libra, and the accompanying Calibra wallet, due to the “vulnerabilities [that] could be exploited.”

Paypal was one of the original members of the ‘Libra Association – a council of 28 companies who vote on policy and operating decisions.

Members of the Libra Association include: Ebay, Spotify, Uber, Lyft, Andreessen Horowitz, Thrive Capital, Visa and Mastercard.

PayPal’s withdrawal may not be the last either as the Wall Street Journal reported last week Visa, Mastercard and “other financial partners” are considering their involvement with the digital currency.