PayPal close to quitting Facebook's Libra project, Visa and Mastercard could follow

PayPal close to quitting Facebook's Libra project, Visa and Mastercard could follow

Facebook's Libra plans continue to stumble as PayPal reportedly gets ready to quit the digital currency project, with Visa and Mastercard also reconsidering their involvement.

According to the Financial Times, PayPal was the only one of Libra's 28 backers not to attend a Thursday meeting in Washington to discuss how to deal with regulatory hostility to the project.

Citing sources, the FT says PayPal is on the verge of quitting Libra amid concerns about the lack of work done by Facebook to address regulators' concerns over issues such as money laundering.

Earlier in the week, the Wall Street Journal reported that Visa and Mastercard are considering their involvement in the project over similar worries about the regulatory and political response.

Competition watchdogs at the European Commission have already begun probing potential anti-trust issues relating to Libra, while the US Federal Reserve and other central banks have expressed concerns over the threat posed to financial stability and monetary sovereignty.

Responding to the WSJ story, David Marcus, the current Facebook and former PayPal exec who is chaperoning the project at the social media giant, said in a tweet "I have no knowledge of specific organizations plans to not step up".

In a series of tweets, Marcus disputed some of the claims in the WSJ report but acknowledged that "change of this magnitude is hard and requires courage + it will be a long journey".

You can find the original twitter thread here

Source: Finextra 

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