Payment platform PayPal is cautiously optimistic about its relationship with Facebook’s digital currency libra, despite being the highest-profile company to join the Libra Association.
PayPal Backs Libra Association
In June, shortly after the official unveiling of Facebook’s libra, PayPal announced an intention to join and support the Libra Association, a collection of tech and finance companies promoting the product.
At the time, PayPal billed the digital currency as a revolutionary product for people around the world,
We believe in democratizing participation in the digital economy for people from all walks of life, and businesses of all sizes.
However, PayPal appears cautious about its future with Facebook’s digital currency. PayPal investor relations vice president Gabrielle Rabinovitch reiterated Sept. 12 that the company is a non-binding agreement with libra,
It’s a non-binding commitment. 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 goals and ambitions of Libra are very consistent with PayPal’s overall ambitions in terms of serving the underserved; democratizing access to capital. So we very much believe in the potential of Libra.
While PayPal appears optimistic about the future of libra, the digital currency has endured months of regulatory and political scrutiny concerning its release.
Earlier in the week, senior U.S. Treasury official Sigal Mandelker told an audience in Geneva that libra would be held to the highest standard of regulatory compliance in order to combat money laundering and terrorist funding.
By Michael LaVere