The Libra project suffers from PayPal’s exit from its plans for the operation of the cryptocurrency.
When Facebook announced its own crypto-project, Libra, in the middle of this year, the idea of the social media giant caused great controversy, due to the apparent complexity of the plan and the complete immersion of the company in the crypto world.
It has not only been a cause for great stir in the cryptocurrency industry, but it has also raised a great concern for some governments due to the lack of laws regulating these type of assets.
This great stir has raised a certain level of distrust or risk about participating in the project of Facebook, leading to a large number of partners and suppliers reconsider their inclusion in the Libra plan. In this sense, PayPal is an important partner who has decided to leave the plan.
The Effects and Challenges of Libra
In the crypto world there has not been a phenomenon as powerful as the one caused by Facebook in just a few months. Only Bitcoin has achieved comparable attention, but Libra has alerted entire governments that did not expect this news.
The announcement about the launch of Libra, developed and conducted by one of the most important companies on the planet, is accompanied not only by the extensive working group of the social network, but also, immersed within the project, there are at least 30 Globally recognized companies that accompany the launch of Libra.
Some economic experts and also experts in the crypto world assume that the Libra project, if launched next year, could have a great impact on the different financial markets of the world. They fear that it generates a level of power that the company has not experienced, since the currency would be included in the financial and monetary business and would alter many other public and private sectors.
Other people consider the inclusion of Facebook in the economic sector to be a sensitive and risky issue. This is because the company handles sensitive and private information of its users.
Due to these considerations, many governments have declared themselves against the launch of Libra and experience a shake in their legislation in order to develop legal tools that help regulate these assets and their range of action in the different world economies.
This puts Facebook’s plans uphill with its cryptocurrency project because, even before its launch, it experiences oppositions from private institutions and governments.
The Position of Paypal
This great opposition that has faced the Libra project, by governments such as the United States or France, has generated that the associated members of the cryptocurrency project see with great concern the idea of having to face other sectors of power.
It is for this reason that PayPal has taken the decision to completely leave the Libra project. Some of them announced, in addition, that despite their departure, they would focus on conducting their own efforts to allow any person or institution access to the financial world.
“We remain supportive of Libra’s aspirations and look forward to continued dialogue on ways to work together in the future. Facebook has been a valuable and long-standing strategic partner for PayPal. Facebook has been a longstanding and valued strategic partner to PayPal, and we will continue to partner with and support Facebook in various capacities”, said a medium specialized in cryptocurrencies, by issuing a statement from the financial company.
The decision of PayPal is a blow that the Libra association experiences; if the same happens with the other members of the project, it could generate the completion of a cryptocurrency that has not yet been introduced in the world of cryptographic market.
By María Rodríguez
