| Hi all, Julie here. Last week, PayPal Holdings Inc. withdrew from the Libra Association, the group tasked with overseeing Facebook Inc.'s embattled cryptocurrency project. Immediately, the question on the lips of policy makers and Bitcoin enthusiasts alike was: Is that it? PayPal became the first to leave the project, which now has 27 members, but it was just one of several companies said to be wavering in its commitment. PayPal's move could wind up being an isolated incident, or it could be a harbinger of a larger defection. Sources have said that Mastercard Inc., Visa Inc. and Stripe Inc.—all also payments companies—have been reconsidering their role in the association, too, as Libra draws blowback from regulators and public officials around the world. Now, those tensions are coming to a head as Facebook calls on its member organizations to step up their backing of the project. Next week in Geneva, members will convene to review a charter for the association and appoint a board of directors. Facebook's first agreement allowed signees to leave at any time. Soon, it will be asking the group for more binding commitments. Almost from the start, Facebook found it was in a lonelier place than it expected with the launch of Libra, a stablecoin meant to hold a steady value across borders and platforms. As Washington officials scrutinized the idea, it got little to no support from the companies that Facebook said were equal partners. The company repeatedly asked other members to speak out about the project, but essentially no one did. That led outsiders to wonder just how committed Facebook's partners are. It also showcased what an awkward position those companies are now in. Many of the Libra Association members are financial companies and startups that depend on their good relationship with regulators. Speaking up about a project that regulators don't like very much probably isn't a great strategy, and it's hard to see how Facebook will sweeten the deal. When PayPal said it was abandoning Facebook's crypto dreams, the Libra Association fired back in a statement: "It requires a certain boldness and fortitude to take on an endeavor as ambitious as Libra—a generational opportunity to get things right and improve financial inclusion." Adding, "We're better off knowing about this lack of commitment from a minority of organizations now, rather than later.'' One thing you'll notice about the quote is that it says "organizations"—plural not singular. Perhaps that's a sign that PayPal is the first, but not the last to say the risks of rethinking the global financial system may outweigh the rewards. —Julie VerHage | 
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