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PayPal to Withdraw from the Libra Association

Taking a dig at Facebook''s attempt to launch a digital currency called Libra next year, Apple CEO Tim Cook told French financial newspaper Les Echos this week that money must remain in the hands of states

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Paypal making online shopping simpler for India as a result of the recent push by the India government towards digitalizationP

In a blow to Facebook’s plan to launch its digital currency Libra, PayPal has announced to withdraw from the Libra Association — the 28-member non-profit organisation formed by the social networking giant for the global roll out next year.

According to a report on The Verge on Friday, PayPal said it decided “to forgo further participation in the Libra Association at this time and to continue to focus on advancing our existing mission and business priorities as we strive to democratize access to financial services for underserved populations”.

Earlier media reports claimed that Visa, Mastercard and some other financial partners who signed on to support Libra were also reconsidering their involvement in the network.

PayPal, however, said it remains supportive of Libra’s aspirations and look forward to continued dialogue on ways to work together in the future”.

Despite PayPal moving out of the Libra project, Facebook reaffirmed its commitment to build “a generational payment network”.

Paypal on digital devices.

“It requires a certain boldness and fortitude to take on an endeavour as ambitious as Libra — a generational opportunity to get things right and improve financial inclusion,” Dante Disparte, the Libra Association’s head of policy and communications, was quoted as saying.

US lawmakers recently attacked Facebook, calling it “delusional” and “dangerous”, directing the social networking giant to clean up its house first before launching a new business model.

Also Read: Flipkart Witnesses Almost 50% Growth in New Customers

Taking a dig at Facebook’s attempt to launch a digital currency called Libra next year, Apple CEO Tim Cook told French financial newspaper Les Echos this week that money must remain in the hands of states.

“I am not comfortable with the idea that a private group creates a competing currency. A private company does not have to seek to gain power in this way,” Cook was quoted as saying. (IANS)

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Several Top-notch Companies Like Visa, Mastercard, EBay Quit Facebook’s Libra Project

The US lawmakers have attacked Facebook on its Libra project, calling it "delusional" and "dangerous"

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facebook, servicefriend, startup, cryptocurrency, libra
Representations of virtual currency are displayed in front of the Libra logo in this illustration picture. VOA

In  a major jolt to Facebook, several top-notch companies like Visa, Mastercard and EBay have pulled out of the Libra cryptocurrency project ahead of their first meeting in Geneva on October 14.

PayPal was the first to announce its withdrawal from the Libra Association — the 28-member non-profit organisation formed by the social networking giant for the global roll out of its digital currency Libra next year.

“Over the course of a few hours, Visa, Mastercard, Stripe and Mercado Pago all bailed on the project. That meant every major US payment processor has exited the association,” reports The Verge.

David Marcus, Libra project head at Facebook, tweeted: “I would caution against reading the fate of Libra into this update. Of course, it’s not great news in the short term, but in a way it’s liberating. Stay tuned for more very soon. Change of this magnitude is hard. You know you’re on to something when so much pressure builds up”.

“Special thanks to @Visa and @Mastercard for sticking it out until the 11th hour. The pressure has been intense (understatement), and I respect their decision to wait until there’s regulatory clarity for @Libra_ to proceed, vs. the invoked threats (by many) on their biz,” he added.

The pull out is to avoid the US regulators who are scrutinizing Facebook and its subsidiaries.

facebook, servicefriend, startup, cryptocurrency, libra
Bitcoin, which has risen in value for eight consecutive days, received a boost after Facebook has said it would offer its own cryptocurrency, the Libra coin by end of June 2020. Pixabay

Facebook CEO Mark Zuckerberg is set to testify before the US House of Representatives on October 23 to discuss concerns over ‘Libra’ that has run into rough weather.

Zuckerberg will be grilled by lawmakers and regulators during the Q&A session at the US House Financial Services Committee.

In July, Congresswoman Maxine Waters (D-CA), Chairwoman of the committee sent a letter to Facebook requesting an immediate moratorium on the implementation of Facebook’s proposed cryptocurrency, Libra, and digital wallet, Calibra.

Also Read: Apple Planning to Integrate its Own 5G Modem in iPhones by the Year 2022

The US lawmakers have attacked Facebook on its Libra project, calling it “delusional” and “dangerous”.

According to a Visa spokesperson, the company “will continue to evaluate and our ultimate decision will be determined by a number of factors, including the Association’s ability to fully satisfy all requisite regulatory expectations”. (IANS)