PayPal is AWOL at Libra Association Meeting on Digital Assets

October 4, 2019 | Digital Assets, News

Paypal was a prominent absentee at a crucial strategy meeting of the Libra Association held in Washington Thursday.

The 28 member Libra Association, which includes PayPal, backs Facebook’s globe-spanning plan for the Libra digital currency. According to a report in the Financial Times, the agenda for the meeting was the global groundswell of regulatory opposition to Libra.

However, a person familiar with the event confirmed to FT that all members showed up for the meeting except PayPal.

Is Paypal having second thoughts?

FT asserted that  PayPal was on the verge of quitting the Libra project after sitting out the Washington meeting.

According to an FT source, PayPal thought Facebook had not done enough to counter the regulatory opposition, especially on the vexed issue of money-laundering.

Further, regulatory scrutiny of Libra may create complications for their businesses, the payments companies fear.

The $10 million test

Aside from PayPal, other members of the Association have also sounded worried about the regulatory backlash against Libra.

“I think it’s going to be difficult for partners who want to be seen as in compliance [with their regulators] to be out there supporting [Libra]” one of the founding partners said to FT in August.

Well, the Association’s meeting in Switzerland, scheduled for mid-October, will likely be an acid test of members’ intentions. The members’ will formalize their participation at this meeting. It may also include modalities for the amount of $10 million each member has to contribute to the Association. A board of directors may also be appointed for the Association at this meeting.

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