PayPal Confirms Exit from Libra Digital Currency Project

PayPal, an electronic payment system operator, has officially confirmed its refusal to participate in the Libra digital currency project, which is being developed by the social network Facebook.

A statement to withdraw from the Libra Association was distributed by PayPal on Friday, October 4.

The company did not name the reasons for the refusal to participate in the project, noting only that it intends to continue to focus "on promoting the current mission and its own business priorities, seeking to democratize access to financial services for socially disadvantaged groups of the population."

Thus PayPal was the first of 28 previously announced members of the Libra Association, which officially leaves the project.

Facebook representatives confirmed PayPal's withdrawal from the association, noting that the company will continue to work with other partners. It is expected that the charter of the organization will be signed on October 14 in Geneva.

Earlier this week, it became known that PayPal representatives did not attend a meeting with members of the Libra Association in Washington, where they discussed a strategy for cooperation with regulators amid fierce criticism of the project.

Allegedly, PayPal believes that Facebook has not done enough to meet the requirements of regulators in the field of anti-money laundering (AML).

According to other reports , Visa, Mastercard and Stripe may not sign the consortium charter.

Recall, in September, French Finance Minister Bruno Le Mayor said that the development of digital currency Facebook in Europe will be blocked, because it threatens the monetary sovereignty of states.

The German government also adopted a strategy to combat the release of Libra and other private stablecoins, while the European Commission did launch an antitrust investigation into the project, suggesting that launching a digital currency from Facebook could lead to the creation of a completely separate economy and disadvantage those who do not uses.

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