American payment processor PayPal has dropped out of the cryptocurrency project Libra, which is based in Geneva.
This content was published on
3 minutes
Julie Verhage and Kurt Wagner, Bloomberg
(Bloomberg) — PayPal Holdings Inc. pulled out of the Libra AssociationExternal link, a blow to Facebook Inc.’s efforts to develop a digital currency.
“PayPal has made the decision 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,” the payments company said in a statement emailed to Bloomberg News on Friday. A Facebook spokeswoman declined to comment.
Several founding members of the Facebook-led project have been wavering over whether to fully embrace the effort because they’re concerned about maintaining positive relationships with regulators who have reservations about the initiative, people familiar with the matter told Bloomberg earlier this week.
Concerns that PayPal might back away from the project intensified on Thursday when the company was mysteriously absent from a meeting of Association members in Washington. All of the other original partners were in attendance, according to people familiar with the situation who asked not to be identified discussing a private meeting.
PayPal’s decision to bail is notable because David Marcus, the Facebook executive leading the initiative, used to be president of PayPal. Facebook’s blockchain team also has many former PayPal employees.
The Libra Association, the group of companies Facebook has assembled to oversee the cryptocurrency, has 28 founding members. The organization has asked these members to reaffirm their commitment to the project later this month. Before Libra was unveiled, the companies signed nonbinding letters of intent to explore joining the association.
Dante Disparte, head of policy and communications for the Libra Association, confirmed PayPal’s decision, and said the first Libra Council meeting will take place on Oct. 14.
“This journey to build a generational payment network like the Libra project is not an easy path,” he added in a statement. “We recognize that change is hard, and that each organization that started this journey will have to make its own assessment of risks and rewards of being committed to seeing through the change that Libra promises.”
Disparte also noted that 1,500 “entities” have indicated “enthusiastic interest” in being part of the Association. Some of those entities already have contracts in the works to join Libra, according to people familiar with the matter, though they’ll have to wait until original partners sign the official charter later this month.
“We remain supportive of Libra’s aspirations and look forward to continued dialogue on ways to work together in the future,” PayPal said on Friday. “Facebook has been a longstanding and valued strategic partner to PayPal, and we will continue to partner with and support Facebook in various capacities.”
(With assistance by Lydia Beyoud and Olga Kharif)
More
More
Libra stablecoin project ‘no threat’ to financial system
This content was published on
Facebook’s Libra cryptocurrency poses no threat to central banks or to financial law and order, says the head of the Geneva-based Libra Association.
Swiss study examines why women and men choose different professions
This content was published on
According to a new study, the fact that there are still prevalently female and male professions is down to the nature of the job.
Swiss president unveils new theme park dedicated to Saint Bernards
This content was published on
The new Barryland theme park in Martigny, south-western Switzerland, was officially opened on Thursday in the presence of Swiss President Karin Keller-Sutter.
Swiss court rejects diplomats’ daughter’s request for permanent residence
This content was published on
The 17-year-old daughter of a diplomatic couple working in Switzerland is not entitled to a residence permit, the Federal Administrative Court has ruled.
Swiss hospitals urge faster recognition of foreign medical qualifications
This content was published on
Foreign doctors wishing to work in a Swiss hospital have to wait several months for their diplomas to be recognised, a situation the hospital association H+ calls 'untenable'.
Switzerland to introduce code of conduct for collecting referendum signatures
This content was published on
Commercial collectors of signatures for initiatives and referendums could be given a legally non-binding code of conduct. This proposal comes from the Federal Chancellery following the discovery of thousands of falsified signatures.
Priest in Switzerland accused of sexually assaulting minors
This content was published on
The trial of a priest accused of sexually abusing nine people opened on Thursday in the Ticino cantonal criminal court in Lugano, southern Switzerland.
Two out of three people in Switzerland use more than one language daily
This content was published on
Two out of three people in Switzerland regularly use several languages in their everyday lives, most often the country's national languages.
Destroyed Swiss village of Blatten to be rebuilt within four years
This content was published on
After the devastating landslide, Blatten in Valais should be standing again by 2029. Municipal president Matthias Bellwald confirmed the corresponding plans to the Keystone-SDA news agency on Wednesday, which he had presented at a municipal meeting the previous evening.
Lufthansa mulls importing its future Boeing aircraft via Switzerland
This content was published on
Buying new Boeing aircraft from the United States via Switzerland could reduce the US trade deficit with Switzerland and avoid punitive customs duties, says a newspaper report.
Swiss environment minister ‘hopeful’ plastic pollution treaty within reach
This content was published on
Swiss Environment Minister Albert Rösti said he's "hopeful until the end" that an ambitious agreement against plastic pollution can be negotiated by the end of the year.
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.
Read more
More
Swiss central bank wary of Libra stablecoin impact
This content was published on
Speaking in Basel on Thursday, SNB chairman Thomas Jordan outlined the central bank’s thinking on digital currenciesExternal link. So-called stablecoins, which hold reserves of francs, dollars and other currencies in proportion to the amount of tokens issued, are much more likely to succeed as competition to traditional forms of payment, he said. This is…
Swiss role in Facebook cryptocurrency project revealed
This content was published on
The social media giant has released details of its cryptocurrency payments project, including the role to be played by its Geneva-based foundation.
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.