8th October 2019

PayPal drops out of Facebook cryptocurrency Libra

It has been reported that payments company PayPal has pulled out of an alliance that is trying to launch Libra, Facebook's digital currency, and Calibra, its digital wallet. It made the announcement on 4 October, but has yet to reveal its reasons.

According to the BBC, the cryptocurrency had been widely criticised by regulators, and both France and Germany have pledged to block it from Europe.

One of the original group of 28 companies and non-profits trying to launch the currency, PayPal said it "[remained] supportive of Libra's aspirations" but had chosen to focus on its own core businesses.

Responding to the news, Libra Association said it was aware that attempts to "reconfigure the financial system" would be hard. "Commitment to that mission is more important to us than anything else," it said in a statement. "We're better off knowing about this lack of commitment now."

The Libra Association is to hold the first meeting of its governing body – the Libra Council – on 14 October. The group said in a tweet that it planned to share updates soon afterwards: about "1,500 entities that have indicated enthusiastic interest to participate".