PayPal would like to withdraw its support for Facebook’s Libra payment method. The company is concerned about the resistance that the project is generating worldwide. Visa and Mastercard are also said to reconsider their support for the project.
PayPal would not have attended an important meeting last Thursday. It was about how Libra should respond to the concerns of financial and political authorities about the possibilities of misuse with the payment method. All other 27 parties that have indicated to support Libra were present.
The Financial Times writes that PayPal is about to withdraw its support. The company is said to be concerned about the way Facebook responds to the objections expressed about, among other things, the money laundering possibilities with Libra. The company is also not satisfied with the preliminary work that has been done to remove objections from regulators. A source from FT is said to have said that it is unlikely that PayPal will participate at the start of Libra, but may decide otherwise at a later date.
PayPal is not alone with its concerns. Earlier this week, the Wall Street Journal reported that Visa and Mastercard are reconsidering their support. The French government and the European Central Bank, among others, have announced in recent months that there is little chance that the Facebook currency will receive approval to be used if the plans do not change.
Facebook announced Libra in June. Officially, a non-profit organization based in Switzerland is responsible for the payment method, but the initiative lies with Facebook, which wants to use the payment method on its platform. Other parties that pledged support for the announcement include eBay, Spotify, Uber, Lyft and Vodafone.