Facebook Open to Stablecoin Pegged to Fiat for the Libra Project
According to reports, Facebook is now open to using national currency pegged Stablecoin for its upcoming Libra cryptocurrency initiative.
On October 20 Reuters reported that David Marcus, the head of the Libra project for Facebook, said that Libra could use various national currency-based Stablecoin in place of the proposed token. Marcus was speaking at a banking seminar on Sunday. He added that the main aim of Libra was to create an efficient payment system and it was not opposed to looking at alternative approaches:
“We could do it differently. Instead of having a synthetic unit ... we could have a series of Stablecoins, a dollar Stablecoin, a euro Stablecoin, a sterling pound stable coin, etc. [...] We could definitely approach this with having a multitude of Stablecoins that represent national currencies in a tokenized digital form [...] That is one of the options that should be considered.”
Initially, it was proposed a basket of various national currencies would back the Libra. These would include the U.S. dollar, euro, Japanese yen, British pound and Singapore dollar.
In addition, David Marcus noted Stablecoins were not the Libra Association’s preferred option for the project. However, he said that it must remain agile.
Libra Has Been on a Tough Patch.
Moreover, Facebook has been facing growing skepticism over its Libra cryptocurrency initiative. Financial ministers and central bank heads from the G20 nations; have concerns global Stablecoins could negatively affect the sovereignty of monetary policy; especially in developing nations. Additionally, the German Federal Minister of Finance, Olaf Scholz claimed that global regulators should prevent Libra’s issuance.
In conclusion, the Libra Association has lost various key members. These backers include major payment and e-commerce giants such as PayPal, Visa, eBay, MasterCard, and Stripe. According to United States Treasury Secretary Steven Mnuchin, the companies pulled out of the association because the project was “not up to par” with American Anti-Money Laundering standards.
About The Author
Mary BrendahMy first love is music – then goes writing. I don’t write fiction, I analyze bulls and bears in markets. I call it my jungle, the digital jungle of crypto and chains.
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