Last week it was revealed that the PayPal Libra partnership officially came to an end.
Earlier in the week, rumors surfaced that PayPal was on the verge on leaving the Libra Association. They were quickly confirmed by the end of the week as no PayPal representative attended the meeting with the 28 Libra backers on the 3rd of October.
An official representative quickly addressed some of the questions regarding the PayPal Libra partnership coming to an end:
“It’s no secret that we support the project’s aspirations. That being said, we still look forward to continuing our dialogue on possible cooperation in the near future. For us, Facebook has been a valued and longstanding partner. This will why we will still do our best to support and partner up with Facebook in many different projects.”
While the rumors about the PayPal exit turning out to be true, there was also information that up to 5 other members of the Libra Association are considering to leave the project.
The PayPal Libra partnership will most likely not happen unless massive regulatory changes occur
Many experts state that PayPal’s reason for leaving is tied with regulatory concerns. It seems that Libra has already completed a lot of deals with regulators and some companies like PayPal are hesitant to allow regulatory scrutiny to bleed into their global businesses.
This is not a surprising development because ever since its inception, Libra has been accompanied by large controversies by lawmakers worldwide.
The bankers at the Federal Advisory Council (FAC) recently shared their concerns that due to Facebook incredibly large user base, the threat of a shadow banking system being create was very real.
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