Friday, 4 October 2019

PayPal quits from Facebook's Libra cryptocurrency

Libra is a cryptocurrency. It is a Facebook-led effort to build a global digital currency. A cryptocurrency is a digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets. The most popular cryptocurrencies are Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Litecoin (LTC) and Bitcoin Cash (BCH).

PayPal was at the beginning a part of 28 companies in the Libra Association. PayPal now became the first member to quit the association. PayPal wants to focus on its own core business. Earlier this week, the Wall Street Journal reported that both Mastercard and Visa were considering leaving the project over money laundering concerns. Facebook has a massive user base - this also makes it difficult to create the cryptocurrency.

The Libra Association said it is better off knowing about this lack of commitment now, rather than later. France and Germany last month pledged to block Libra from operating in Europe and backed the development of a public cryptocurrency instead.

PayPal Holdings Inc. is a USA company operating a worldwide online payments system that supports online money transfers and serves as an electronic alternative to traditional paper methods like checks and money orders. PayPal operates as a payment processor for online vendors, auction sites and many other commercial users. The company charges a fee in exchange for benefits such as one-click transactions and password memory. PayPal was established in 1998. PayPal had its initial public offering in 2002. Later in 2002, PayPal became a wholly owned subsidiary of eBay. PayPal is frequently used to buy internet products that are not available in physical stores.

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