PayPal cautious about Libra’s future

As International outcry mounts over Facebook’s upstart cryptocurrency

Facebook is facing public criticism about its planned cryptocurrency Libra over concerns about privacy and money laundering. PHOTO: REUTERS

SAN FRANCISCO:
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 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 non-profit 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 stable virtual money that lives on smartphones and could bring over a billion “unbanked” people into the financial system.  


Published in The Express Tribune, September 15th, 2019.

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