Back when Facebook officially announced its Libra cryptocurrency, one of its partners was PayPal. Said partner has decided to withdraw from the Libra Association. Effectively, this also ends its support for the social media company’s cryptocurrency.
PayPal did not cite a specific reason for the withdrawal. According to The Verge, the company’s statement states that it wants “to continue to focus on advancing our existing mission and business priorities as we strive to democratize access to financial services for underserved populations.”
On the other hand, it’s also possible that PayPal is retreating because of Facebook’s apparent lack of concern over regulatory scrutiny. A Financial Times report states that another reason could be the platform’s plan to combat money laundering.
Losing PayPal will not necessarily mean the end of Libra. That said, PayPal is one of the major financial partners, alongside other giants like Mastercard and Visa. Speaking of which, both companies have also considered withdrawing over similar money laundering concerns.