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PayPal Withdraws Support For Facebook's Libra Cryptocurrency (theverge.com) 29

PayPal is withdrawing from the Libra Association, the 28-member nonprofit organization formed in June 2019 to oversee the cryptocurrency's creation and eventual consumer rollout. The Verge reports: The company doesn't cite a specific reason, saying only in a statement to The Verge that it decided "to forgo further participation in the Libra Association at this time and to continue to focus on advancing our existing mission and business priorities as we strive to democratize access to financial services for underserved populations." "We remain supportive of Libra's aspirations and look forward to continued dialogue on ways to work together in the future," the statement continues. "Facebook has been a longstanding and valued strategic partner to PayPal, and we will continue to partner with and support Facebook in various capacities."

However, a report published by the Financial Times yesterday said PayPal had begun distancing itself from the project amid increasing regulatory scrutiny. The company reportedly signaled its intention to skip a meeting in Washington, DC scheduled for today, and the FT reports that at least one primary concern for PayPal has been the lack of attention Facebook executives have paid to Libra's considerable backlash. Another key concern is how the platform will combat money laundering activity.

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PayPal Withdraws Support For Facebook's Libra Cryptocurrency

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  • Who wants to "democratize access to financial services for underserved population" – yes, of course.

    Just like 'nonprofit' is a totally understandable attribute for an 'association' formed by Mastercard, PayU, Stripe, Visa Inc., Booking Holdings, eBay, Facebook, Lyft, MercadoPago, Spotify, Uber, Iliad SA, Vodafone, Andreessen Horowitz, Breakthrough Initiatives, Ribbit Capital, Thrive Capital, Union Square Ventures (et al.; in arbitrary order).

    So it's just The Better against The Good, or maybe the other

  • by etash ( 1907284 ) on Saturday October 05, 2019 @06:37AM (#59272640)
    paypal probably realized that Libra will destroy their business model (much cheaper than the ~5% for every transaction going to paypal) and the huge instant user base.

    good night paypal, it was nice knowing you.
    • Re:um no.... (Score:4, Interesting)

      by Pinky's Brain ( 1158667 ) on Saturday October 05, 2019 @08:14AM (#59272730)

      I was always surprised they were part of it, it was clearly Facebook trying to find a cheap way to compete with paypal through the hands-off regulatory regime for cryptocurrencies.

      Maybe they just wanted to be on the inside to better formulate plans to sabotage it and they no longer see the need?

    • Not really. This is not about a business model, but about running their business in general. They are registered as a bank or something bank-like in a lot of jurisdictions. If the regulator says that any of the financial institutions in their remit cannot touch Libra with a bargepole, PayPal has to do that. The way things are going most regulators are on their way to issue such decisions and PayPal is simply pre-empting the inevitable.
  • by h33t l4x0r ( 4107715 ) on Saturday October 05, 2019 @07:12AM (#59272668)
    At least they didn't go with the original proposed currency name: Zuckerbux
  • facebook fades away in to obsolescence like My_Space did, or yahoo chat & groups and other various stupid social crapola did in the past
  • I can't even imagine the insanity that would result from having them run everyone's money.

    It would make the original Twilight Zone look subtle and understated it in its be careful what you wish for messages.

    • by Agripa ( 139780 )

      I can't even imagine the insanity that would result from having them run everyone's money.

      It would make the original Twilight Zone look subtle and understated it in its be careful what you wish for messages.

      It would be more like the most pessimistic and depressing of the Black Mirror or Masters of Horror episodes.

  • Great words https://quettaresults.com/ [quettaresults.com]
  • When paypal will comes in Pakistan anybody knows ? regarding richyevents [richyevents.com]
  • I think it's not good news, as Libra is new thing and they must be supported by current giant companies. Facebook itself have potential to promote it, but for sake of harmony it is needed to get support of community. Zubair Amin [zubairamin.com]
  • "Tyrone, you know how much I love watching you work, but I’ve got my country’s 500th anniversary to plan, my wedding to arrange, my wife to murder and Guilder to frame for it; I’m swamped."

    “Facebook, we'd love to help you fleece people and extend ever more control over their lives, but we have a lot of businesses to screw and people to anger ourselves. Best of luck, though.”

New crypt. See /usr/news/crypt.

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