Facebook cryptocurrency: PayPal abandoned the Libra project

Facebook Cryptocurrency

The payment system decided to withdraw from the consortium of companies that supports the digital currency.

PayPal announced Friday that it will decrease its participation in the group of companies that Facebook gathered months ago with the aim of launching a global payment network based on cryptocurrencies, and that it was baptized as Libra.

According to an article in The Wall Street Journal, the payment company “made the decision to abandon its participation” in the group that supports the pound cryptocurrency, a spokesperson said in an email. However, for the moment PayPal continues to support Libra and will continue to discuss how to work together in the future, the representative added to the US newspaper.

The PayPal announcement comes days after The Wall Street Journal reported that Visa, Mastercard and other financial partners that had agreed to support the Libra payment network are reconsidering their participation after certain regulatory risks that the currency can run are known. digital.

The social media giant unveiled plans in June for Libra, which will be launched in 2020, to be backed by a basket of monetary assets to avoid the sudden changes of Bitcoin and other virtual units.

The Facebook project was originally coordinated with 28 other companies that make up the consortium that will manage the digital currency, but in recent months it has faced regulators from several countries that have expressed concern about how the currency would be regulated, particularly regarding to control money laundering and terrorist financing.

In July, the US Congress asked Facebook to stop the development of Libra alarmed by the “scarce information” and the “lack of regulatory protection” behind the digital currency.

SOURCE: Infobae

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