PayPal pulls out of Facebook's Libra Association

Facebook’s Libra is facing more growing pains. PayPal, one of the members of the Libra Association, has chosen to withdraw from it at this time.

PayPal gave the following statement explaining its reasoning:

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.

For its part, Libra gave the following statement:

Building a modern, low-friction, high-security payment network that can empower billions of financially underserved people is a journey, not a destination. This journey to building a generational payment network like the Libra project is not an easy path. We recognize that change is hard, and that each organization that started this journey will have to make its own assessment of risks and rewards of being committed to seeing through the change that Libra promises. We look forward to the first Libra Council meeting in 10 days and will be sharing updates following that, including details of the 1,500 entities that have indicated enthusiastic interest to participate.

Libra has yet to get off the ground, and setbacks like this, as well as promised scrutiny from regulators in regions like the UK, are sure to put a dampener on Facebook’s ambitions.

Source: The Verge