TECH

Is Facebook Libra doomed to fail? PayPal withdraws from the Project

Libra Association, the 28-member nonprofit organization that was formed back in June 2019 to oversee the creation of Facebook's cryptocurrency and its consumer rollout, has just lost one of its supporters. Sadly, the brand that has decided to pull out of the project is one of the most popular providers of online money transfer solutions - PayPal.
Back in June, Facebook's subsidiary Calibra and 27 other companies joined their forces as the Libra Association to develop the Libra permissioned blockchain digital currency. Although the initial release was scheduled for next year, it looks like the project is already facing some serious setbacks as PayPal has just become the first one to leave the project.
Less than a week ago, family insiders with the matter who spoke to The Wall Street Journal revealed that "Visa, Mastercard and other key financial partners are reconsidering their involvement in Facebook's Pound" and now we hear that PayPal has just bailed out. According to an email sent out by PayPal spokeswoman Amanda Coffee last Friday, "PayPal has made the decision to forge further participation in the Libra Association at this time and to continue to focus on advancing our existing mission and business priorities."
In addition to the aforementioned brands, the list of big names that are involved in the Geneva-based Pound Association also includes telecommunications giant Vodafone, leading digital currency exchange Coinbase, as well as Spotify, Uber, and eBay. Unfortunately, the degree of regulatory attention drawn upon by Libra might mess up Facebook's plans in the cryptocurrency world.
Libra's fate might be decided at the end of this month, when Facebook's COO, Sheryl Sandberg, should appear before the House Financial Services Committee to discuss the project and the accusations that target the company's ads platform.
Considering the current state of things, would you bet on Pound or bail out as soon as possible to avoid having your company name stained? Feel free to drop your thoughts in the comments section below, as usual.

Codrut Nistor