The remaining members include Visa and Uber.
The announcement was made by PayPal with no specifics as to why the company has pulled out of the alliance with Facebook. PayPal stated the company wished to focus on its own core business but that it “remains supportive of Libra’s aspirations”.
This announcement has been made following criticism of the cryptocurrency with France and Germany pledging to block in Europe and Trump commenting that he is “not a fan”.
Potential $1M per day fine for Facebook’s Libra
What is Libra?
Libra was announced last year by Facebook with the goal to make payments with its own currency using its own apps that will make payments as easy as texting. However, concerns have been raised about the security of currency and data alongside the volatility of the cryptocurrency.
How has Facebook’s Libra responded to PayPal’s withdrawal?
Libra association commented:
The type of change that will reconfigure the financial system to be tilted towards people, not the institutions serving them, will be hard. Commitment to that mission is more important to us than anything else. We’re better off knowing about this lack of commitment now, rather than later
The digital currency will be launched in 2020.