PayPal President Dan Schulman has confirmed that Facebook's cryptocurrency Libra will be launched in early 2020, confirming that the company is one of the participants in this new project.
According to Brazilian media Valor today, Schulman said he believes Libra will be a stable and inclusive option for the current financial system, as blockchain technology allows more people to participate.
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In an interview with the media, he pointed out that PayPal operates as required by the regulatory authorities and has spent hundreds of millions of dollars on compliance and risk management since taking office.
“When they talked to us about Libra, I clearly realized that using blockchains opened up a path for us to help us achieve our mission of serving non-bank accounts.”
Schulman also said that more than 2 billion people are currently excluded from the financial system, and this figure does not include those who do not have access to appropriate financial services. According to reports, in the United States alone, 70 million people use about 10% of their available income for financial services such as ATM withdrawals and transactions.
He added that Americans spent more than $140 billion in these areas last year. This means that using cryptocurrencies allows those who need money to save money instead of spending on those services.
Facebook's Libra is a cryptocurrency that can be used in social networking ecosystems including Facebook, WhatsApp and Instagram to provide financial services to nearly 2 billion users.
Federico Schumacher, general manager of PayPal Brazil and Mexico, also said that Libra can prove that cryptocurrency can be a payment method rather than an investment.
“We have seen that many technologically advanced cryptocurrencies are used as investments, not money.”
It's worth noting that Facebook earlier stated in a filing with the Securities and Exchange Commission (SEC) that it may delay or may never launch Libra because it is aware of the global regulatory review of Libra . And now the view of the president of PayPal seems to overturn this view.
In addition to Facebook, more and more industry giants are beginning to notice the potential of cryptocurrencies and blockchains. On Friday, Wal-Mart revealed in a patent application that it is working on a stable currency that can be used in internal stores, similar to Libra.