PayPal (PYPL)  announced Friday that it will not participate in Facebook's fledgling Libra cryptocurrency. 

There had been rumors reported earlier this week, but on Friday PayPal made it official.

"PayPal has made the decision to forgo further participation in the Libra Association at this time and to continue to focus on advancing our existing mission and business priorities as we strive to democratize access to financial services for underserved populations," the company said in a statement.

Facebook's Libra Association features 28 different corporate backers, but the Wall Street Journal reported that Visa (V) , Mastercard (MC) , and other financial partners are getting cold feet and are "reconsidering" their involvement with Libra amid scrutiny from government officials. 

Facebook shares rose 0.6% to $180.45 on Friday, while shares of PayPal rose 1.7% to $102.79,

Facebook is a key holding in Jim Cramer's Action Alerts PLUS charitable trust

Save 57% During Our Fall Sale. Join Jim Cramer's Action Alerts PLUS investment club to become a smarter investor. Click here to sign up and save!