The Libra project, which is currently led by David Marcus, a Facebook executive who was previously PayPal’s president, has run into significant multi-national regulatory headwinds in recent months.
This news comes several days after reports suggested PayPal was on the verge of leaving due to Facebook’s lack of coordination with regulators prior to launching the project.
“It doesn’t seem that there was a lot of pre-work done with regulators,” an insider told the Financial Times. “[Payments] companies don’t want that [regulatory scrutiny] to bleed into their businesses.”
The final decision to bail on Libra could ultimately result in a cascading effect that might prompt other early backers to flee the highly-scrutinized cryptocurrency project.
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.