PayPal confirms decision to refuse to participate in Libra project

PayPal representatives said that the company “decided to refrain from participating in the Libra blockchain project and focus on the democratization of financial services for the population.”

“Facebook is our long-standing and valuable strategic partner, therefore, despite our current solution, we support their aspirations in the Libra blockchain project. In the future, we intend to continue the dialogue on joint work, ”PayPal said.

“We confirm that at this stage, PayPal refused to participate in the Libra blockchain project,” a representative of the Libra Association said.

Facebook social network announced
about her plans to launch Libra in June of this year and almost immediately faced with the fact that the authorities and regulators of various jurisdictions were critical of the project. First of all, fears are that the launch of Libra can destabilize
global financial system. French authorities
and Germany
openly stated that they would take all measures to prevent the spread of Libra in Europe. In the US, a group of organizations called on Congress to freeze
development of the project until all associated risks are studied.

Facebook said that work on Libra will continue along with 27 partners who will manage Libra using an investment token as a vote. Presumably, the charter of the organization will be signed in Geneva on October 14.

“Creating a safe and modern financial network that will expand access to financial services for billions of people is only a process, not an end goal. We recognize that all the processes we have planned are very complex, and we hope that each organization that will accompany us along this path will conduct its own assessment of the risks and promises of Libra. The first meeting of the Libra Council will take place on October 14, after which we will reveal the details of the Libra project, including information on 1,500 organizations that have expressed interest in participating, ”said Dante Disparte, Head of Politics and Public Relations, Libra Association.

Recall that this week the developers of Libra introduced
first project roadmap. In addition, it became known that Visa and Mastercard are reviewing
participation in Libra due to the negative mood of politicians.