PayPal Cautious About Future of Facebook’s Libra Cryptocurrency

Facebook envisioned Libra as a new global cryptocurrency, pledging to deliver a stable virtual money that lives on smartphones.

By Agence France-Presse | Updated: 14 September 2019 11:33 IST

PayPal Cautious About Future of Facebook’s Libra Cryptocurrency

Facebook unveiled plans in June for its cryptocurrency Libra

Highlights

PayPal says the debut of Libra is a "non-binding commitment"
PayPal VP for investor relations believes "a lot of work" is required
Facebook envisioned Libra as a new global cryptocurrency

PayPal is cautious about the future of Facebook-backed cryptocurrency Libra, which is slated to debut with the pioneering digital payments firm as part of its oversight association. International outcry is mounting over Libra -- with central banks, governments and regulators railing against Facebook's upstart cryptocurrency and questions over how it would be regulated.

The social media giant unveiled plans in June for Libra -- which will roll out in 2020 -- to be backed by a basket of currency assets to avoid the wild swings of Bitcoin and other virtual units.

"It's a non-binding commitment," PayPal investor relations vice president Gabrielle Rabinovitch said Thursday of the California-based company signing on to the Libra Association.

"And obviously, I think there's a lot of work to happen before we get to that point where it becomes something more than just a very exciting idea."

The nonprofit Libra Association, based in Geneva, will oversee the blockchain-based coin, maintaining a real-world asset reserve to keep its value stable.

Facebook envisioned Libra as a new global cryptocurrency, pledging to deliver a stable virtual money that lives on smartphones and could bring over a billion "unbanked" people into the financial system.

Hundreds of billions of dollars are transferred annually between migrants and loved ones in their home countries, and PayPal is a player in that sector.

"The goals and ambitions of Libra are very consistent with PayPal's overall ambitions in terms of serving the underserved; democratising access to capital," Rabinovitch said.

"So we very much believe in the potential of Libra."

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.