PayPal, a pioneer online payment, has just stepped out of the 28-member group backing Facebook’s Libra after facing series of attacks from governments across the world. The withdrawal of Paypal is a dagger in the heart of Libra Association, yet more big blows appears to be on the way for the project.
The backing out of Paypal coupled with a report by the Wall Street Journal’s that Visa and Mastercard, and some others, are having a rethink on their commitment to the project, suggests that there are cracks on the pillars of Libra project network.
As if that was not enough, the CEO of Apple Tim Cook added more salt to the injury by throwing a jab at the project during an interview session by a French news publication, LesEchos.
When asked about the Facebook’s Libra project and the controversies surrounding it, Tim Cook in a translated message by The Verge, impenitently said:
“I really think that a currency should stay in the hands of countries. I’m not comfortable with the idea of a private group setting up a competing currency…A private company shouldn’t be looking to gain power this way.”
These are all showing up after the project faced stringent scrutiny from the US and European policymakers who deplored the viability of the project. France and Germany publicly vowed to ward-off the project in their provinces.
NewsLogical earlier reported that about 30 world’s banks would be quizzing Facebook on its impending Libra Project.
Even though Libra Association is throwing the kitchen sink at the impediments, the lasting regulatory security seems to be a major concern for the Libra payment network, making companies who earlier gave a leg up have a change of mind.
The loss of the American online global payment network PayPal is more traumatic for Libra association than any other of the 28-member group supporting the social media giant’s idea.
The head of Calibra David Marcus who is an erstwhile president of PayPal could not help secure backing despite his close ties with the company, signaling that something very significant is underlying.
Even though the events: a rethink of commitment from Visa and Mastercard and Tim Cook’s opprobrium are unconnected with the exit of PayPal, as they as the two happened before the PayPal’s decision.
The conglomeration of the three events is indeed historical in the life of Libra and a big blow that could show other supporting members a way out of the association.