PayPal reveals reasons for leaving Libra! PayPal reveals reasons why they left Facebook’s cryptocurrency project, Libra. When Libra launched, there was a total of 28 companies that had signed on to be a part of the Libra Association.
The Association was made up of a consortium of companies including PayPal, Visa, MasterCard, and Coinbase. In October, PayPal became the first company to walk away from the consortium. They did not specify a reason when they left, only saying “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.”
In an interview with Fortune.com, Dan Schulman, PayPal’s CEO, said that they had originally joined Libra in an effort to learn more about blockchain infrastructure and methods to do things more efficiently. He described the split between PayPal and Libra as not “acrimonious” – just a difference in paths being taken with a potential to work together again in the future.
One of the biggest takeaways from the interview is the emphasis that it was not regulatory scrutiny nor compliance that spooked PayPal from the Libra Association – it was “where do we want to put our attention and what do we want to do today to advance our mission?”
He also touched upon the fact that cryptocurrencies are volatile – merchants do not have a big demand for it since they already operate on very small margins. But he ended the interview by reiterating that there is a space for crypto – and yes, he does own Bitcoin.
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