Facebook, despite recent controversy on behalf of founder, Mark Zuckerberg, has been steadily working to establish a form of global currency called Libra. A number of other companies have joined Facebook, forming, as a collective, the Libra Association. One giant member of the association, PayPal, has decidedly pulled out of the initiative.
PayPal has stated its reason for the decision was so that the company could better focus on the core of its associated business(es). In a statement regarding their voluntary exclusion, PayPal said, “We remain supportive of Libra’s aspirations and look forward to continued dialogue on ways to work together in the future.”
In response to Paypal’s official statement, the Libra Association acknowledged this as the first of many obstacles in the way of their goal of redefining finances for all.
“The type of change that will reconfigure the financial system to be tilted towards people,” said the Libra Association in their response statement, “not the institutions serving them, will be hard…We’re better off knowing about this lack of commitment now, rather than later.”
Meanwhile, Facebook Inc. refused to comment on the situation. After announcing the projected implementation of Libra digital currency by 2020, the company faced a lot of scrutiny and rejection. For instance, both Visa and Mastercard have considered dropping out of the Libra Association due to fears of negative, regulatory criticism. The countries of France and Germany have also vowed to block Libra currency, in lieu of public cryptocurrency.
Although PayPal has taken their exit, the Libra Association is still comprised of around 28 members, which includes Lyft, Uber, and Spotify. The first Libra council meeting will, according to the Association, reveal some 1,500 companies which have expressed interest or enthusiasm for Libra’s advancement and wide-scale implementation. The Libra Association claimed in their tweet that these entities are all likewise interested in participating in Libra’s agenda as well.
Dil Bole Oberoi
