NEW YORK (AP) — PayPal is pulling out of Facebook's digital currency project, known as Libra, a blow to the social media company that has faced stronger-than-expected scrutiny over its proposed creation of an alternative payments system.
The digital payments company said Friday it is withdrawing from the Libra Association and focus on its existing businesses.
Facebook has presented Libra as a currency that could be used for digital payments, particularly outside the U.S. It would be backed by real currency, unlike other digital currencies like Bitcoin or Etherium.
But financial regulators as well as members of Congress have questioned Facebook's motives at creating a new digital currency, particularly in light of criticisms that Facebook's business model is too invasive into its users' privacy.