Dan Schulman, PayPal’s president, has confirmed Facebook’s cryptocurrency Libra will launch in early 2020, while also confirming the firm is part of the new project.
According to a report published by Brazilian newspaper Valor, Schulman noted he believes the Libra will be a stable and inclusive option for the financial system, as blockchain technology can help include more people in it.
Speaking to the news outlet he noted PayPal has to work according to regulators’ demands, and that the firm spend “hundreds of millions of dollars” in compliance and risk management once he took over as president. He added:
When they approached us about the libra, it was clear to me that the idea of potentially using blockchain opens an avenue to reinforce our mission to serve the unbanked.
Schulman further added over two billion people are currently living outside of the financial system, and that the figure doesn’t include those who aren’t getting proper financial services. Per the news outlet, 70 million people in the U.S. alone spend around 10% of their available income on financial services such as ATM withdrawals, transactions, and more.
Per the PayPal executive, last year Americans spent over $140 billion this way. This means that using cryptocurrencies could see those who need the funds keep them, instead of spending them in these services.
Facebook’s Libra has been touted as a cryptocurrency that could be used within the social network’s ecosystem – which includes Facebook, WhatsApp, and Instagram – to provide its nearly two billion users with financial services.
PayPal’s managing director for Brazil and Mexico, Federico Schumacher, was also quoted as saying the Libra could see cryptocurrencies be used as a payment method, instead of as an investment. He stated:
We’ve seen technology-rich cryptocurrencies be used as an investment, rather than as a currency
Notably some claim Bitcoin, the flagship cryptocurrency, was created to be used as cash, as a payment method, while others see it as a store of value that’s meant to be “gold 2.0.” This led to a scaling debate, that ultimately led to the creation of Bitcoin Cash.
As CryptoGlobe recently covered Facebook’s Libra may be about to face competition, as Walmart recently filed a patent for a Libra-like stablecoin that could be used within its stores.