Libra

David Marcus, Co-creator of Libra, Facebook Co

Amid PayPal’s pulling out from the Thursday meeting in Washington, there are market speculations about PayPal being ‘on the verge of’ quitting Facebook’s Libra project.

As per media reports, other American payment platforms backing the project including Visa Inc, Mastercard Inc and Stripe Inc are also ‘reconsidering’ their participation to avoid clashes with the US and European Government officials, holding reservations about the project.

Of all the 28 Libra backers who were to accumulate to discuss how to tackle increasing opposition from the regulators, PayPal was the only one not to show up, according to Financial Times.

Citing a source from PayPal, FT further said that PayPal has reservations about Facebook’s groundwork to address concerns regarding the possibility of money laundering using digital currency. The report also mentioned PayPal’s possibility to drop out initially and re-joining the project later.

However, Facebook Exec David Marcus, in-charge of Libra, denied the rumors by tweeting “I have no knowledge of specific organizations plans to not step up…”.

According to the Wall Street Journal, on October 14 this year, representatives from backing companies are slated to hold a meeting in Geneva to discuss further course of action.

Meanwhile, the US’ Treasury Department has reportedly sent letters to Libra’s backers privately, asking for an overview of their money-laundering compliance and how Libra will fit into them.

Amid the allegations of Facebook failing to address the backlash and compliance concerns, Marcus commented, “we’re very calmly, and confidently working through the legitimate concerns that Libra has raised by bringing conversations about the value of digital currencies to the forefront…”

Further addressing the apprehensions he stated that “change of this magnitude is hard and requires courage + it will be a long journey…”

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by Sheeba Bhagat Dawar
Market Analyst at IBS Intelligence
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