Payment giant PayPal officially withdraws from Facebook's Libra project

According to the Wall Street Journal, PayPal officially withdrew from Facebook's Libra Stabilization Coin project.

A PayPal spokesperson told The Wall Street Journal that the company "made a decision to abandon further participation," adding that it still supports Libra's mission and will continue to explore ways to collaborate between the two companies in the future.

Just the day before the Financial Times reported that PayPal was the only absentee among the 28 founding members at the Libra Association where Facebook convened to discuss how to deal with regulators. The withdrawal of PayPal will be a heavy blow to the Libra project, and David Marcus, the head of Facebook blockchain who led the project early, previously served as president of PayPal.

A person close to PayPal said the payment company was concerned that Facebook could not solve the global opposition from the project, especially in money laundering. The person familiar with the matter said, “They don’t seem to have a lot of up-front work with regulators. Payment companies don’t want regulatory review to infiltrate their business.”

Dante Disparte, director of policy and communications at the Libra Association, said, “It is not easy to build a payment network like the Libra project. We recognize that change is daunting, and each participating organization must assess the risks and rewards of fulfilling its commitments. ”

The Libra Association released the latest developments on the project on Wednesday, saying it already has partner nodes running on the Pre-Mainnet. It said that after testing the network, it is hoped that the Libra main network can be successfully launched. The ultimate goal of Libra's main network is to have all partners deploy nodes on the network.

The Libra Association also stated that although the Libra project faces some regulatory obstacles in various countries around the world, its development is still proceeding in an orderly manner.