After backlash from major governments around the world, Facebook faced its first real challenge when PayPal announced its withdrawal from Associations Libra. According to the announcement made by the giant online payments company, they decided that it would be better to opt out of further participation in cryptocurrency project Facebook, preferring to focus on promoting its existing products and business.
According to the statement:
We continue to support Libra's aspirations and look forward to continuing the dialogue on ways to work together in the future. Facebook is PayPal's long-standing and valuable strategic partner, and we will continue to collaborate and support Facebook at various levels.
The news was later confirmed by a representative of the Libra Association. Unfortunately, Facebook is not so easy to negotiate with many governments, financial institutions, and even companies that express deep concern about creating the Libra coin. Facebook intended to develop Libra to provide financial services to non-banking individuals around the world, offering an easier and more convenient way to transfer money.
According to Dante Disparte, head of politics and communications at the Libra Association, Facebook is aware of the difficulties it faces in creating a new modern payment network with low friction and high security that could potentially move billions around the world, but the company is not going to letting go of an idea just because it's hard:
We recognize that change is complex, and that every organization that embarks on this journey will have to independently assess the risks and benefits of seeing the changes that Libra promises. We look forward to the first meeting of the Libra Council, and after that we will exchange updates, including information about 1500 organizations that have shown interest in participating.
Due to the fact that governments stand in the way and ensure that Facebook does not receive the support necessary for the successful launch of the Libra coin, Facebook will have to make additional efforts if it plans to issue its stable coin next year. It seems that financial institutions are making extra efforts to put pressure on other payment providers in order to eventually force them to abandon Libra support and to abandon the association.
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