PayPal withdraws support for Facebook's Libra cryptocurrency
PayPal has decided to withdraw from the Libra Association, the 28-member nonprofit organization formed in June 2019 to oversee the cryptocurrency's creation and eventual consumer rollout.
The company doesn't cite a specific reason, saying only in a statement to The Verge that it decided "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."
[...] a report published by the Financial Times yesterday said PayPal had begun distancing itself from the project amid increasing regulatory scrutiny. The company reportedly signaled its intention to skip a meeting in Washington, DC scheduled for today, and the FT reports that at least one primary concern for PayPal has been the lack of attention Facebook executives have paid to Libra's considerable backlash. Another key concern is how the platform will combat money laundering activity.
[...] Losing PayPal does not necessarily signal the eventual unwinding of Libra, but the company was a major financial player, alongside existing members like Mastercard and Visa, of the Libra Association. Facebook's blockchain chief David Marcus, who oversees Libra and Facebook's companion digital wallet app Calibra, was also a former PayPal president prior to running Facebook Messenger for the social network.
Losing PayPal, in that context, is not a great sign for the health of the project. The Wall Street Journal also reported earlier this week that both Mastercard and Visa, as well as digital payment platform and processor Stripe, were also considering withdrawing from the association over similar money laundering concerns. It's unclear if fellow Libra Association member eBay, from which PayPal was spun out in 2015, plans to continue participating.
Related: Visa, Mastercard Reportedly Reconsidering Support For Facebook's Libra
Related Stories
Arthur T Knackerbracket has found the following story:
The coalition Facebook assembled to create a global payments network may be losing some key financial support. Visa, Mastercard and other financial partners who signed on to support Libra are reconsidering their involvement in the network, The Wall Street Journal reported Tuesday.
The financial partners are reluctant to attract regulatory scrutiny following backlash from governments and banks and have declined Facebook's requests to publicly support the project, the Journal reported, citing sources familiar with the matter.
[...] Visa declined to comment. Representatives from Facebook and Mastercard didn't immediately respond to requests for comment.
Also at The Wall Street Journal.
Submitted via IRC for SoyCow1337
Senators pressure Visa and Mastercard over work on Facebook's blockchain project
'If you take this on, you can expect a high level of scrutiny from regulators'
Lawmakers have begun actively pressuring members of the Libra Association, the international blockchain payments project led by Facebook, to reconsider their involvement with the group.
In a new letter sent to the CEOs of Visa, Mastercard, and Stripe, Sens. Brian Schatz (D-HI) and Sherrod Brown (D-OH) warn of enormous risks inherent in the Libra project, including facilitating criminal and terrorist financing and destabilizing the global financial system. The letter also suggests the companies would face increased oversight from financial regulators in their conventional, non-blockchain businesses if they continue with the association.
"Facebook appears to want the benefits of engaging in financial activities without the responsibility of being regulated as a financial services company," the letters read. "If you take this on, you can expect a high level of scrutiny from regulators not only on Libra-related activities, but on all payment activities."
Republicans have also been skeptical of the project, with Sen. Josh Hawley (R-MO) describing it as Facebook "expanding their monopoly."
As payment processors, all three companies face significant federal regulatory burdens, including from the Federal Trade Commission, Consumer Financial Protection Bureau, and the Department of Justice. Facebook is already facing growing scrutiny from those agencies — particularly the FTC, which reached a $5 billion settlement with the company earlier this year. None of the three payment processors immediately responded to a request for comment.
Previously:
PayPal Withdraws Support for Facebook’s Libra Cryptocurrency
Visa, Mastercard Reportedly Reconsidering Support For Facebook's Libra
Stormclouds Gather for Facebook's Libra Currency
Submitted via IRC for AnonymousCoward
More Libra woes:
EBay, Stripe and Mastercard drop out of Facebook’s Libra Association – TechCrunch
Oof — a week after PayPal announced plans to part ways with Facebook’s Libra cryptocurrency project and the related association of the same name, three more names are reportedly breaking away: eBay, Stripe and Mastercard. (Update: and now Visa!)
In a comment to TechCrunch, a Stripe spokesperson leaves the door open for them to potentially work with Libra in the future — but not right now:
“Stripe is supportive of projects that aim to make online commerce more accessible for people around the world. Libra has this potential. We will follow its progress closely and remain open to working with the Libra Association at a later stage.”
Previously:
Visa, Mastercard Reportedly Reconsidering Support For Facebook's Libra
PayPal Withdraws Support for Facebook’s Libra Cryptocurrency
(Score: 0) by Anonymous Coward on Monday October 07 2019, @09:53PM
making sure they sit on all the sales tax money they are now collecting as long as they can to get the most profit out of that money fer nuthin
(Score: 1, Insightful) by Anonymous Coward on Monday October 07 2019, @09:59PM
E Coin by Evil Corp
(Score: 0) by Anonymous Coward on Monday October 07 2019, @10:20PM (7 children)
I understand there are all kinds of hoops you have to jump through to establish a consumer-facing financial outfit, but why no competitor to paypal despite all the complaints? I guess the margin doesn't justify the risk of going up against establish paypal?
(Score: 2) by c0lo on Monday October 07 2019, @10:31PM (6 children)
FYI: Stripe [wikipedia.org], Alipay [wikipedia.org], Google Pay [wikipedia.org]/Apple Pay [wikipedia.org], Amazon Pay [wikipedia.org], PayU [wikipedia.org].
https://www.youtube.com/watch?v=aoFiw2jMy-0 https://soylentnews.org/~MichaelDavidCrawford
(Score: 0) by Anonymous Coward on Monday October 07 2019, @10:35PM (5 children)
So you are saying the eBay is the reason for paypal domination?
(Score: 4, Informative) by c0lo on Monday October 07 2019, @11:00PM (4 children)
I'm saying PayPal domination is not. Alipay [wikipedia.org]
https://www.youtube.com/watch?v=aoFiw2jMy-0 https://soylentnews.org/~MichaelDavidCrawford
(Score: 0) by Anonymous Coward on Monday October 07 2019, @11:21PM
That's Chinese market, and that's no joke, but for America...n... ?
(Score: 2) by JoeMerchant on Tuesday October 08 2019, @01:15AM (2 children)
Per capita, China, India and Africa are the markets - per unit value exchanged is another story.
🌻🌻 [google.com]
(Score: 2) by c0lo on Tuesday October 08 2019, @01:35AM (1 child)
And total payment value passing through, yet another.
Speaking of which [bankinnovation.net]
For comparison Paypal - Operating highlights for full year 2018 [paypal.com]
https://www.youtube.com/watch?v=aoFiw2jMy-0 https://soylentnews.org/~MichaelDavidCrawford
(Score: 2) by JoeMerchant on Tuesday October 08 2019, @01:56PM
Cool - and I'm just stuck in the 70s with my Visa card.
🌻🌻 [google.com]
(Score: 0) by Anonymous Coward on Tuesday October 08 2019, @01:11AM (1 child)
What coincidence, I withdrew my support for Paypal. Nothing to do with Libra and everything to do with policies like not refunding fees to sellers that have returns. I refuse to do business with a company like that.
(Score: 0) by Anonymous Coward on Tuesday October 08 2019, @08:31AM
Freezing funds for random reasons is probably the worst thing they've done.
notabank !
(Score: 1, Troll) by The Mighty Buzzard on Tuesday October 08 2019, @02:12AM (9 children)
As go the CC companies, so go PayPal, Stripe, etc... At least if they want to be able to process credit card transactions. There's some serious anti-competitive bullshit happening in the payment industry.
My rights don't end where your fear begins.
(Score: 2) by c0lo on Tuesday October 08 2019, @05:42AM (8 children)
Oh, really? Prey, do tell (or 'Citation needed' if you so prefer)
With so many online payment processors [wikipedia.org] I might have missed the anti-competitive bullshit you say is happening.
'cause you wouldn't speak through your ass, bullshitting us, your fellow soylenters, would you?
https://www.youtube.com/watch?v=aoFiw2jMy-0 https://soylentnews.org/~MichaelDavidCrawford
(Score: 2) by The Mighty Buzzard on Tuesday October 08 2019, @07:18AM (5 children)
So many? There are basically two and a bunch of fiscal remora. Yeah, yeah, there's also Discover and American Express but they're the Miss Congeniality of credit cards, with no prospects of ever toppling the control of the other two. Every last company like PayPal or Stripe damned well better keep V/MC happy with them or they will be filing for bankruptcy the very next day. And not supporting someone trying to take money out of the V/MC coffers is absolutely going to be part of that.
My rights don't end where your fear begins.
(Score: 2) by c0lo on Tuesday October 08 2019, @09:10AM (4 children)
Maybe in your neck of the woods. If you'd only try to live in other places, who knows how many wonders you may discover?
Like paying your bill through a local "fiscal remora" payment processor, which don't charge the vendor the blood of their first born. Or have respectful human customer support in a language the payers can understand if they have cases that need attention.
You know? The exact definition of local competition instead of global behemoths employing MBA's looking for new ways to screw somebody just to improve the bottom line and get that Christmas bonus.
https://www.youtube.com/watch?v=aoFiw2jMy-0 https://soylentnews.org/~MichaelDavidCrawford
(Score: 2) by The Mighty Buzzard on Tuesday October 08 2019, @02:14PM (3 children)
Other necks of the woods aren't particularly useful information to me as they don't have any bearing on what I have to put up with.
My rights don't end where your fear begins.
(Score: 2) by c0lo on Tuesday October 08 2019, @02:29PM (2 children)
Be it as it may be, your neck of woods isn't the entire world.
Perhaps next time you feel the compulsion to project your perspective as the absolute reality, you could add "in my neck of the woods" to it?
For example in this case:
At least you'll be less prone to forget how small your neck of the woods is and how much of the whole world you don't know.
https://www.youtube.com/watch?v=aoFiw2jMy-0 https://soylentnews.org/~MichaelDavidCrawford
(Score: 2) by The Mighty Buzzard on Tuesday October 08 2019, @04:55PM (1 child)
Why? I don't give a fuck about your neck of the woods, which is much smaller financially than mine and utterly irrelevant to my life.
My rights don't end where your fear begins.
(Score: 2) by c0lo on Tuesday October 08 2019, @08:29PM
You don't give a fuck other then you, that's evident already.
https://www.youtube.com/watch?v=aoFiw2jMy-0 https://soylentnews.org/~MichaelDavidCrawford
(Score: 1) by khallow on Tuesday October 08 2019, @02:08PM (1 child)
(Score: 2) by c0lo on Tuesday October 08 2019, @02:21PM
Of course they can refuse whatever payment methods they don't like. For example, they are able to refuse payments in goats, chicken, sheep, checks or American Express [kappit.com].
Many stores around here will not accept AMEX [google.com]
https://www.youtube.com/watch?v=aoFiw2jMy-0 https://soylentnews.org/~MichaelDavidCrawford