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PayPal Leads the Race in Dropping out of Facebook Cryptocurrency

PayPal - cfamedia

Facebook’s digital currency launch last might have suffered a set back as PayPal becomes the first organisation to drop off its alliance.

The reason for the decision wasn’t made public as the payment company announced it on Friday.

In June this year, Facebook revealed its cryptocurrency, Libra alongside its digital wallet (Calibra).

The revelation wasn’t all welcoming as financial regulators on the cryptocurrency have frowned against it with Germany and France leading the charge in Europe.

PayPal has chosen to remain focus on its core business but maintained it stands in support of Facebook’s cryptocurrency aspirations.

A group of 28 firms including PayPal and some non-profits organisations developed the Libra as part of the Libra Association.

Responding to the withdrawal of PayPal, the Libra Association admitted its awareness concerning how difficult it would be to “reconfigure the financial system”

“Commitment to that mission is more important to us than anything else,” “We’re better off knowing about this lack of commitment now.”, the Libra Association said

With WhatsApp and the cryptocurrency app, Libra users would be able to make payments with the currency. All the firms in partnership with Facebook will also be able to execute transactions using Libra.

According to Facebook, it’s cryptocurrency would be managed independently as well as supported by real assets.

With recent volatility on cryptocurrency, growing concerns have shown that users’ money and data may not get well protected.

In July, some group had warned that it would stall all efforts to let Libra work until it has satisfied all financial regulations.

With recent developments, the Libra Association would have its first Libra Council meeting on Monday, October 14, 2019.

In a tweet, the Libra Association plans to give out updates on more than a thousand entities with interest in its cryptocurrency.

Featured Image: Pymnts

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