PayPal withdraws from Libra Association, a project supported by Facebook

PayPal withdraws from Libra Association according to the announcement made by the company. A representative of the payment processor said that PayPal “made the decision to cancel a subsequent participation” at the Libra Association and that it will

“It continued to focus on promoting its mission and business priorities, while striving to democratize access to financial services for people with reduced access to the banking system. “

The declaration also includes:

“We continue to support Libra’s aspirations and look forward to continuing the dialogue on how to collaborate in the future. Facebook has been a long-term strategic partner and appreciated for PayPal and we will continue to collaborate and support Facebook in various capacities. “

An Association spokesman confirmed that PayPal is withdrawing from Libra Association:

“We can confirm that PayPal has notified us that it does not intend to join us.”

Government pressure

Facebook launched the Libra whitepaper in June. It proposes a stable cryptocurrency meant to provide financial services to people with limited access to the banking system worldwide. The project was met with immediate negative reactions from governments and regulators. Many policymakers in several countries have argued that Libra risks destabilizing the global monetary order.

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Ministers from France and Germany pledged to block the project, while the head of the financial and banking commission in the US Congress called for the development of the project to be stopped until its legality was clarified.

Facebook explained that it will work with 27 partners within the Libra Association to govern the token. The association will meet on October 14 to sign a statute that formally creates a governing board.

The charter of the Libra Association will be signed on October 14th

The Libra Association’s communications director, Dante Disparte, said that “building a modern, low-friction, high-security payment network that can empower billions of people financially underestimated is a journey, not a destination. This journey to build an international payment network, such as the Libra project, is not an easy way. “

Separate added:

“We recognize that change is hard and that every organization that started this journey will have to make its own risk and reward assessment before engaging in the change Libra promises. We look forward to the first Libra Council meeting in 10 days. We will share updates afterwards, including details on the 1,500 entities that indicated the enthusiastic interest in participating. “

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