The online payments platform, PayPal decided to be a part of the upcoming digital currency, Libra. The reason behind this association with Libra is that PayPal has been in the payments industry for more than 20 years now, and they wish to share their experiences as well as knowledge with the Facebook backed Libra.
But now things have changed. PayPal is now cautious and worried about the future of Facebook-backed digital currency all over the world. Central banks from across the globe, governments, and regulators have raised questions regarding the working of Facebook’s upcoming cryptocurrency. They have asked Facebook to explain how the money will be regulated amongst people and what they are using all safety measures.
The social media giants revealed their plans of launching Libra in June. The cryptocurrency is deemed to roll out in 2020, and it will be backed up by several currency assets to avoid the wild fluctuations shown by Bitcoin and other cryptocurrencies.
PayPal’s Investor Relations, Vice President Gabrielle Rabinovitch, informed that their involvement in Libra Association’s project is a non-binding commitment. Libra Association is a nonprofit organization that will take care of the blockchain-based coin and will maintain a real-world asset to keep its value stable.
Mark Zuckerberg has confirmed their dedication to launch Libra despite the pushback from governments. Libra has raised concerns and fears of the currency being a loosely supervised global currency. However, Zuckerberg said that Facebook publicly released the details so that people can go ahead and ask their questions regarding the cryptocurrency. Facebook is a part of the administrative association for Libra, which already has 27 companies on board.