Paypal has become the first of 28 facebook coin backers to leave the Libra association. The leading US payments processing firm announced that it would forgo all dealings with the Facebook Coin and instead focus on growing its core business. 

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Amidst high controversy following Facebook’s announcement of releasing a digital global coin; the news wasn’t received well by <a href="https://www.theverge.com/2019/10/4/20899271/apple-ceo-tim-cook-facebook-libra-cryptocurrency-criticism-power-grab">politicians, financial activists and regulators</a> across the world and in the United States. Therefore, Paypal might have found it best to distance itself from the ongoing Libra development. 

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The United States Congress has remained overly vocal about the matter and has continued to demand that Mark Zuckerberg comes forward; to provide more information about the project. At this front, in fact, it seems both Democrats and Republicans have stepped forward to raise concern about the global coin. 

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In a public statement related to the exit, Paypal stated: 

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<blockquote>“We remain supportive of Libra’s aspirations and look forward to continued dialogue on ways to work together in the future’</blockquote>
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In response to the exit announcement, Libra noted that it was aware of the challenges it was going to face ahead in its attempt to <a href="https://www.cryptoknowmics.com/crypto/mpesa-a-kenyan-success-story-and-how-blockchain-could-be-the-kiss-of-death/">reconfigure the financial system</a>. Here is part of a statement the Geneva based Corporation released;

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<blockquote>“The type of change that will reconfigure the financial system to be tilted towards people, not the institutions serving them, will be hard. Commitment to that mission is more important to us than anything else. We’re better off knowing about this lack of commitment now, rather than later”</blockquote>
<h2>Bottom line</h2>
However, Facebook Inc declined to comment about the matter. Since releasing the Libra Coin Whitepaper and announcing plans to launch a digital currency; the project has run into huge skepticism and especially regulators everywhere. There is fear that Mastercard and Visa could follow suit to exit the association, following the exit of Paypal.  Nevertheless, there are also speculations that the association could postpone the June 2020 release date.

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Reason Why Paypal Just Left Libra Association

leading US payments firm, Paypal, announced that it would forgo all dealings with the Facebook Coin and instead focus on growing its core business.

Richard is a versatile fintech analyst with a deep understanding of blockchain domains. As much as technology fascinates him, he finds the intersection of both technology and finance mind-blowing. The firm belief that fintech will drive the future has brought him to the crossroads of Fintech discoveries and transmission of immutable data to a wider audience.

Reason Why Paypal Just Left Libra Association

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