The cryptocurrencyLb it had big names in the finance and technology industry when it was announced by Facebook in June, but it appears to be weakening before its launch. This Friday (4), the PayPal officially announced that it is withdrawing from the project.
In note to Bloomberg, the payments company says: “PayPal made the decision to renounce membership in the Libra Association at this time and continue to focus on advancing our existing business missions and priorities as we strive to democratize access to financial services for needy populations ”.
Associação Libra confirms the departure of PayPal and says that the path to launch the cryptocurrency will not be easy. “We recognize that change is difficult and that each organization that started this journey will have to make its own assessment of the risks and rewards of committing itself to seeing the change Libra promises,” says policy and communications director Dante Disparte.
The news comes the same week that another rumor signaled Libra’s weakening. According to Wall Street Journal, Mastercard, Visa and other partners would be rethinking their participation in the project due to the resistance that the cryptocurrency has been facing in the regulatory scope worldwide. In August, the Financial Times I had already said that two members wanted to give up Libra.
France argues that Libra should be banned throughout the European Union, because it challenges the monetary sovereignty of the bloc’s countries. The United States has asked Facebook to stop launching the cryptocurrency until the risks to national security and the global financial market are analyzed. The project is also expected to face resistance in China and India.
Libra will be regulated in Switzerland and commanded by the Libra Association, formed by
28 27 members from various sectors, including Mastercard, Visa, Spotify, Uber, Mercado Pago, Coinbase, the NGO Women’s World Banking, in addition to Facebook itself. The cryptocurrency is expected to debut in 2020, through digital wallets on WhatsApp and Facebook Messenger.
Tecnocast 121 – Libra, Facebook’s cryptocurrency
If Facebook were a bank, would you trust it with your money? And if there was a global digital currency, controlled by an association of more than 100 companies and NGOs, would you use it? In today’s Tecnocast we talk about Libra, Facebook’s cryptocurrency.
The Libra Association’s goal is to launch a digital currency based on blockchain, but without the volatility of bitcoin. If the project succeeds and the currency is adopted en masse, the Libra Association would become a kind of global central bank, controlled by several private companies and NGOs.
The idea is a little scary, but we explain everything in this episode of Tecnocast. Play and come with us!