Paypal Withdraws from Facebook's Libra Cryptocurrency (cnbc.com)

Article summary

PayPal has withdrawn from Facebook's Libra Association, a nonprofit governing the Libra cryptocurrency project. The project has faced scrutiny from lawmakers and regulators worldwide, with some expressing concerns over Facebook's control and potential risks. PayPal's decision may indicate that the alliance is starting to fray, with other financial partners reportedly reconsidering their involvement. The withdrawal is seen as a significant blow to the project's credibility and future prospects.

Main themes

• Libra cryptocurrency
• Facebook's control
• Regulatory scrutiny
• Financial partnerships
• Cryptocurrency adoption

What commenters say

• Some believe that governments are secretly supportive of Libra and will eventually find a way to control and utilize it for their own purposes.
• Others argue that Facebook's involvement in Libra is a major red flag due to the company's history of mishandling user data and prioritizing profits over security.
• There is a concern that Libra's launch could lead to increased government control over cryptocurrency and potentially stifle innovation in the space.
• A few commentators think that Libra's failure could be a blessing in disguise, as it may prevent Facebook from abusing its power and exploiting users through a new financial system.
• Some argue that the state has a monopoly on legal violence and that corporations like Facebook can be just as untrustworthy as governments.
• Others counter that democracies provide a system of checks and balances that prevent governments from abusing their power, whereas corporations like Facebook are not accountable to the public in the same way.
• A few commentators believe that Libra's potential for mainstream adoption is limited due to its lack of investment potential and potential tax liabilities for users.
• Some think that the US government will eventually shape the law and regulatory environment to prevent the existence of any cryptocurrency with its own valuation, allowing only distributed ledgers denominated in central bank currencies.