We’ve heard a lot about Facebook Libra backers having cold feet over the past week.
Initially, a couple of months ago when Libra seemed like an almost sure move into a brave new world of privately run cryptocurrencies, many of today’s big financial names were very enthusiastic about stepping on board.
We had Visa and MasterCard both vowing to become Libra node holder backers for $10 million apiece, as well as payment facilitators Stripe and PayPal. Uber also got in on the action early, at least in terms of pledging its probable support.
Today, we have very different news as PayPal makes it official – the company, according to reports, will not be a Libra backer.
CNet has this from PayPal spokesperson Amanda Christine Miller:
“PayPal has made the decision to forgo further participation in the Libra Association at this time and to continue to focus on advancing our existing mission and business priorities as we strive to democratize access to financial services for underserved populations.”
The public statement doesn’t say why PayPal is choosing to go another direction, but we also know that regulators have been aggressive in criticizing Libra and voicing concerns about its implementation over the past two weeks.
There’s harsh words from French finance minister Bruno Le Maire, as well as remarks by Fed chair Jerome Powell and the President himself who tweeted that the dollar is the greatest and everything else can take a hike.
Then, for example, U.S. Rep. Maxine Waters has claimed that Facebook “repeatedly shown a disregard for the protection and careful use of” relevant data.
In response, Libra is circling the wagons with spokesperson Dante Disparte declining to comment on additional withdrawals of corporate backing.
“We recognize that change is hard,” Disparte told reporters.
Is Libra down for the count? We’ll see.
