PayPal is the first brand to leave Facebook's Libra Cryptocurrency project

Oct 11, 2019


PayPal announced last Friday (4) its withdrawal from the Libra Association, a group created by Facebook for the creation of the Libra digital currency.

According to the statement sent by the payments company, it will no longer be involved in the decisions made by the group and will redirect the time and effort that was being spent on this initiative to internal projects. “We continue to support Libra's aspirations and look forward to continuing the dialogue. about ways we can work together in the future, ”was the comment made by PayPal announcing its departure from the group.

Techcrunch technology portal shared the message sent by the Libra Association after Paypal left. According to the note, “The journey will be long and challenging. The kind of change that will reconfigure the financial system to address people, not the institutions that serve them, will be difficult. Commitment to this mission is more important to us than anything else. We better know about this lack of commitment now than later. "

PayPal is the first financial market brand to leave the association, and the announcement came days after Bloomberg published a report stating that payment companies would be undecided to pursue the project due to pressure from government agencies and an alleged More detailed information is missing from Facebook.

Until the end of this article, the other companies that announced the partnership with the social network (such as Visa, Mastercard and Mercado Pago), did not stand against or in favor of the project.

Counter Voices
Before Paypal announced its departure from the association, the French newspaper Les Echos published an interview in which Tim Cook, Apple CEO, criticized the initiative.

"I really believe that [managing] a currency should be in the hands of countries. I'm not comfortable with the idea of ​​a private group creating a competing currency. A private company should not seek power in this way."

Not only is the Apple executive thinking this way: Executive (and presenter) Mark Cuban has already classified the digital currency as "dangerous" and the governments of France and Germany have stated that they intend to block the use of the Pound within their territories.

Announced in June as part of Facebook's payment subsidiary Calibra, the Libra cryptocurrency would be used as a means of payment for transactions on and off the social network. Taking into account that the platform is visited by 2 billion people monthly, the Pound would be able to turn into a really important currency within the economic scenario.

With the departure of Paypal from the operation and the reservations of important people and governments in the global market, it remains to follow how the next steps will be taken by the group.

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