PayPal withdraws from Facebook's Libra Association World 02:49

PayPal withdraws from Facebook's Libra Association World 02:49

Facebook's response: Commenting on the fall out with Paypal, the Libra Association in a statement said that it required a certain boldness and fortitude to take on an endeavour as ambitious as Libra and that commitment to the mission is important and so knowing about this lack of commitment by Paypal is better off now than later.

PayPal, who was one of 28 corporate backers of the project, is withdrawing from Facebook's Libra Association, the company announced Friday, as the libra cryptocurrency continues to face harsh criticism from lawmakers and entrepreneurs.

PayPal is pulling out of a group of companies assembled by Facebook to launch its new cryptocurrency payments network. The organization has asked these members to reaffirm their commitment to the project later this month.

PayPal said it will "forgo further participation" in the Libra Association. The global payments giant becomes the first founding member of Libra to officially depart the project.

"We recognize that change is hard", reads a Libra statement posted to Twitter by CNET's Queenie Wong, "and that each organization that started this journey will have to make its own assessment of risks and rewards of being committed to seeing through the change that Libra promises".

The group said in a tweet that it will hold its first Libra Council meeting in 10 days and will be sharing updates following that, including "details of the 1,500 entities that have indicated enthusiastic interest to participate".

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She didn't say why the payments company is dropping out of the association, but said the company supports the Libra Association's goals and will continue to partner with Facebook in other ways.

This follows backlash from USA and European government officials, people familiar with the matter told the Wall Street Journal.

However, the company said it still regarded Facebook as "a longstanding and valued strategic partner" which it will continue to support in "various capacities".

He noted how Facebook's massive user base could spell problems in terms of smoothly implementing the cryptocurrency.

A United Nations forum in Geneva examines whether blockchain can help meet Sustainable Development Goals.

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