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PayPal becomes first member to exit Facebook's Libra Association


WASHINGTON - U.S. payments processor PayPal Holdings Inc said on Friday it was leaving Libra Association, the entity managing the Facebook-led effort to build global digital currency Libra, making it the first member to exit the group.

In response, Geneva-based Libra Association said it was aware of the challenges lying ahead in its attempts to "Reconfigure" the financial system.

"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", Libra Association said in a statement.

Facebook announced plans to launch the digital currency in June 2020 in partnership with other members of Libra Association but the project quickly ran into trouble with skeptical regulators around the world.

Reuters reported last week that Facebook could push back the launch of Libra to tackle regulatory concerns.

France and Germany last month pledged to block Libra from operating in Europe and backed the development of a public cryptocurrency instead. With the exit of PayPal, Libra Association now has 28 members, including Uber Technologies Inc, Lyft Inc and Spotify Technologies.

"We look forward to the first Libra Council meeting in 10 days and will be sharing updates following that, including details of the 1,500 entities that have indicated enthusiastic interest to participate," Libra Association said in a tweet.

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