Heavy! PayPal or Libra project that will quit Facebook

According to the Financial Times, three people familiar with the matter said that payment giant PayPal is about to withdraw from Facebook's Libra project.

On Thursday, Facebook convened 28 founding members of the Libra Association, the governing body of the project, to discuss how Libra will respond to the growing opposition from regulators. But one participant said that PayPal is the only absent member.

PayPal's exit will be a heavy blow to the Libra project, and David Marcus, the head of the 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.”

The person familiar with the matter also revealed that PayPal is unlikely to be the first signatory of the Libra Association, but may rejoin the project later.

According to Facebook's information released in June this year, every member of the Libra Association promised to invest $10 million. At present, no members have contributed capital. It was scheduled to hold a meeting in Geneva in mid-October to formally sign the relevant agreement.

Several people familiar with the project said that Libra's supporters in the payment field, Visa, MasterCard and Stripe, are particularly concerned about regulatory issues.

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. ”

Author Xiu MU This article comes from pushing bitpush.news

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