San Francisco, IANS. Facebook's ambitious plan to launch a digital currency called Libra has begun to crack. US-based payment processing company PayPal has announced its exit from the Libra Association. Facebook is responsible for launching this digital currency on the 29-member Libra Association, which is part of the majority of American companies. PayPal became the first company to exit, and since its exit the association now has 28 members.
In a statement, "Paypal said it would focus on its core business and would not have any involvement with Libra, it remains positive about Libra's ambitions and looks forward to negotiating ways to work with it in the future". Earlier, veteran members of the Libra Association, such as Visa and MasterCard, also indicated that they were reconsidering their engagement with the Libra.
The main reason for this is that financial regulators all over the world have talked about a negative impact on the entire banking system with a digital currency like Libra. Many regulators have criticized the digital currency like the Libra. In such a situation, companies do not want to have any effect on their own business worldwide.
In response, the Geneva-based Libra Association said that it is aware of such challenges in the way of efforts to redefine the financial system around the world through this digital currency. The association said that the changes in the financial system he is working on will be accountable to the people, not to the institutions working for them.
In such a situation, the challenges of his path will also be difficult. Commitment is needed more than anything else in this mission. We will get information about any kind of lack of commitment in later stages, it is better to get it right now. "The association also said in a tweet that it is going to hold the first meeting of the Libra Council within the next 10 days. Facebook Inc., on the other hand, declined to comment on it".
Announcement was made in June Facebook announced its plans to introduce a new digital currency like Bitcoin on 18 June this year. Facebook and about two dozen partner companies introduced a prototype of the new currency 'Libra'. A non-profit organization called Libra, based in Geneva, will oversee the blockchain-based new currency.
This organization will keep a stock of real currencies in the world based on the value of the new currency, so that the value of the libra remains a certainty. The currency is to be launched in June next year as per the pre-determined plan. However, given the current developments, it may be delayed.