PayPal withdraws from Facebook Libra Association

Η decided to withdraw from the Libra Association, a non-profit organization made up of 28 companies and formed in June of 2019 to oversee the emergence of the upcoming cryptocurrency but also to make it available to consumers.

Libra Association

The company did not give a specific reason for its departure from the Libra. But in a statement published by TheVerge, she says:

We continue to support the Libra Association and look forward to ongoing dialogue on new ways of working together in the future. Facebook is a long-term and valued strategic partner of PayPal and we will continue to partner and support the company.

However, an article that posted yesterday the Financial Times reported that PayPal was moving away from the project due to increased regulatory controls. The company said it would not attend a meeting in Washington, and the FT says that at least one primary concern of PayPal was the lack of attention that Facebook executives appear to be showing in the major reactions to Libra. Another unanswered question by Paypal seems to be how the platform will be able to combat money laundering.

In a statement posted by TheVerge, Dante Disparte, head of policy and communications at Libra Association, reaffirmed the nonprofit's commitment to "create a comprehensive payment network" by criticizing PayPal for not having the "strength" to do so. insists on something as difficult and demanding as the Libra project.

"It takes courage and vigor to make an effort as ambitious as the Libra project," says Disparte.

The journey will be long and difficult. The type of change that will reshape the financial system will have to be about people, not the institutions that serve them, and that will be difficult. The commitment to this it is more important to us than anything else. So is to know from now on who is not committed.

The loss of PayPal does not necessarily mean the dissolution of Libra, but no matter how we do it, the company was an important economic factor, along with existing member companies such as Mastercard and Visa, of the Libra Association.

The loss of PayPal may not be a worrying sign of project progress, but the Wall Street Journal Reported also earlier this week that both Mastercard and Visa, as well as digital payments platform Stripe, were considering pulling out of the Libra Association over similar concerns about money laundering from illegal activities.

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Written by giorgos

George still wonders what he's doing here ...

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