Payments giant PayPal, one of 28 members of the Facebook-led Libra stablecoin project, is on the verge of quitting the project.
The Financial Times reported the news Thursday, saying that PayPal did not attend a key meeting in Washington to discuss how Libra would address increasing opposition from global regulators.
PayPal was the only member firm not present at the meeting, “people familiar with the event,” told the FT.
The payments giant is reportedly concerned that Facebook has not done enough to address rising scrutiny, especially related to money laundering issues. One person close to PayPal told the newspaper: “[Payments] companies don’t want that [regulatory scrutiny] to bleed into their businesses.”
The person added that PayPal may rejoin the project at a later date.
It would be a big blow for Facebook if PayPal quits the project, which is being led by former PayPal executive David Marcus. Also, most of the project’s team contains former PayPal staff.
Other payments giants – Visa, Mastercard and Stripe – are also reportedly hesitating to officially sign on to the Libra project. Executives at these companies have been concerned with Facebook’s handling of data and privacy issues.