PayPal on the verge of exiting the Libra cryptocurrency project

PayPal is on the verge of quitting the Facebook Libra cryptocurrency launch project. On Thursday, representatives of the payment service did not attend one of the key meetings dedicated to its launch. About this writes the Financial Times, citing sources.

On Thursday, a meeting of 28 members of the so-called Libra Association was held, which, in addition to PayPal, includes: Visa, eBay, Mastercard, Booking, Lyft and Uber. On that meeting participants discussed how Libra will deal with the growing opposition from regulators.

FT quoted a source close to PayPal, according to which the company is concerned about the fact that Facebook is not doing enough to overcome the negative reaction to the project, including the criticism – because of the possibility of money laundering using cryptocurrency. “It doesn’t look like there is a lot of preliminary work with regulators. Payment companies do not want regulatory control to penetrate their own business” – from source. PayPal is unlikely to participate in the project from the very beginning, but may join it later.

PayPal declined to comment on this information. PayPal’s exit from the project can hit it pretty hard, especially since other payment companies, including Visa and Mastercard, are also concerned about the regulators’ excessive attention to Libra.

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Recall that the possible influence of cryptocurrency on the market is checked by US and EU regulators, cryptocurrency has already been criticized by US President Donald Trump and the head of the US Federal Reserve Jerome Powell, and French Minister of Economy Bruno Le Maire announced his intention to block the use of Libra in Europe.

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