Facebook’s Libra cryptocurrency has yet to be released but it seems that the company is already facing quite a number of issues. Adding onto those issues would be PayPal, who was initially announced as one of the founding supporters of Libra, but have now confirmed that they will be withdrawing their support of it.
PayPal has yet to officially cite a reason as to why they are doing this, and in a statement released to The Verge, the company was quoted as saying, “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.”
If you have been keeping yourself up to date, then this move shouldn’t really come as a surprise. This is because ever since Libra was announced, the cryptocurrency has been met with a lot of resistance from regulators and the government, citing a myriad of potential problems that it could lead to, such as indirectly supporting illegal activities.
Following these concerns, a recent report from the Financial Times (paywall) hinted that PayPal had started to distance itself from the project, and now it looks like they are finally out. Facebook had cautioned its investors that based on the amount of scrutiny they are under, there is a chance that Libra might not even get off the ground.