According to a report, Facebook Inc. together with its partners is considering redesigning the Libra crypto project so that the network could allow multiple coins, including the ones provided by central banks, to restore momentum for the project and address reluctant global regulators.
Two of the three people who were aware of the issue cited they were considering reshaping Libra to form a payments network that could work with different types of coins.
Facebook Is Looking To Form A Global Payments System
According to these individuals, the coins supported by the network could include those distributed by central banks and backed by the Euro, the U.S. dollar or other fiats. They are looking to form a payments network rather than becoming a single global cryptocurrency.
Libra Association’s communication and policy head, Dante Disparte, cited the organization hasn’t changed its objective of forming a regulatory compliant payments system, and the basic design principles which were essential to support the purpose have not been altered.
As initially visualized, the crypto coin would be built backed by stable assets, such as government bonds, U.S. dollars, euros, Singapore dollars, Japanese yen and U.K. pounds. The Reserve of Libra created from these debt instruments, and currencies would back the token, whose price would change according to the price of underlying assets.
Lawmakers And Other Authorities Against The Idea
However, the plan was opposed by U.S. lawmakers who cited they didn’t believe Facebook to maintain a financial system after the firm’s several failures in different fields, particularly its repeated failures to protect customer data.
Officials from some central banks stated the new cryptocurrency could threaten the freedom of their coins, while finance ministers bothered that it could facilitate crimes such as money laundering. Some European regulators declared the project would never get any permission.