PayPal Declared Its Departure From Libra Association

PayPal Declared Its Departure From Libra Association

Facebook has been working on designing its Libra cryptocurrency for over a year now. The officials at Facebook have reported at numerous instances that the world should expect the launch of the digital currency in the second half of 2020. Facebook aims at introducing a cryptocurrency that wouldn’t only be openly traded in various applications under its name, such as Messenger and WhatsApp, but would also be internationally exchangeable.

According to the previous reports, as many as 27 corporate giants had originally pledged their support for the Libra Association including the likes of MasterCard, Visa, Uber, and of course, PayPal. However, ever since its announcement, Libra has faced staunch criticism from governments and regulatory authorities from across the globe. Countries like France and Germany had recently declared that Libra’s operations will be banned in the European region. Trump Administration along with Mr. Steven Munchin, U.S Treasury Secretary, have also openly expressed their discomfort about the Libra Association.

PayPal Will No Longer Be A Part Of Libra Association

An even greater blow to the Libra cryptocurrency, however, came this Friday when one of its largest and most important partner, PayPal announced its departure from the coalition. Owing to the rising tension regarding the digital currency by Facebook, PayPal has stated that it no longer sees a reason to continue its affiliation with the Libra Association.

Ms. Amanda Coffee, a prominent spokesperson for the leading name in online payment portals, “PayPal”, highlighted in her email sent out on Friday, October 4th 2019, that PayPal intends to focus its efforts on the business priorities that are aligned with the current mission rather than experimenting with a venture with Facebook at this time. No official statement from Facebook has been released so far in response to PayPal’s announcement via the Wall Street Journal.

Facebook Is Yet To Respond

The primary ambition for Facebook regarding Libra cryptocurrency was to design a supposedly newer, better, and more efficient financial system that will not be entirely under the control of central banks or the wolves of Wall Street. Facebook has been active in addressing the global concerns of it being the sole authority behind the new digital currency. It was made clear that a broad network of 27 major corporate names, instead, will serve the role in alliance. However, as per the financial experts, losing a prominent partnership with PayPal can be construed as the objective being pushed farther away from realization.

All eyes are now set on Facebook to declare its strategy moving forward without the support of PayPal. Regardless of Facebook’s next move, however, it is anticipated that the journey ahead will be a tougher one for Facebook’s Libra cryptocurrency.

By Michael Harris
Specialising in economics by academia, with a passion for financial trading, Michael Harris has been a regular contributor to Invezz. His passion has given him first hand experience of trading, while his writing means he understands the market forces and wider regulation.

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