PayPal closes Facebook's Libra as Europe sets the future for the project in question – RT Business News
US-based PayPal Holdings Inc. has said it is ditching Facebook's project to create Libra cryptocurrency. However, the Libra Association says it is better to know who is not fully committed to its cause.
"PayPal has made the decision to forgo further participation in the Libra Association at this time and continue to focus on advancing our existing mission and business priorities as we strive to democratize access to financial services for undervalued populations," The CNBC channel reported, citing a statement from the payment processor.
PayPal, however, said it will remain “ supports Libra's ambitions. "The move made PayPal the first member to leave the Geneva-based Libra Association, the unit that managed the Facebook-led project to create a global digital currency.
Following the PayPal announcement, the Libra Association has coolly replied that it prefers to know which of the group's members is not fully committed to its cause from the start.
“ The kind of change that will configure the economic system to be tilted towards people, not the institutions that serve them, will be difficult. Commitment to that mission is more important to us than anything else. We are better off knowing about this lack of commitment now, rather than later, ”the group said in a statement, quoted by Reuters.
The group said in a tweet that it will hold its first Guard Council within 10 days and will share updates thereafter, including " details of the 1500 units that have indicated enthusiastic interest in attending. ”
Meanwhile, Facebook Inc. declined to comment on PayPal's exit. The Libra Association now has 28 members, including Uber Technologies Inc, Lyft Inc and Spotify Technologies. However, the Wall Street Journal reported earlier this week that Visa, Mastercard and several other financial partners who had signed up were " again " their participation in the Vågen project due to pressure from government officials.
Facebook unveiled plans to launch its digital currency by June 2020 this past summer. However, the project faces difficulties globally due to skeptical regulators. France and Germany both stated last month that they would try to prevent Libra from operating in Europe, saying it posed a risk to EU sovereignty. The European Central Bank has also repeatedly asked for strict supervision of Vågen and will present a report on it at the upcoming G20 meeting. US Federal Reserve Chairman Jerome Powell recently said that Libra raises "serious concerns about privacy, money laundering, consumer protection, financial stability." The Fed later created a working group to investigate the new coin.
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