To tackle a series of hurdles and skepticism regarding the Libra project, including the loss of several partners who were once on the board – such as PayPal, Mastercard, Visa, and Stripe – Facebook gave an announcement this Sunday, October 20th, that could change the initial currency’s plan.
Instead of the synthetic global currency – that was the original goal – Libra could use cryptocurrencies based on national currencies – like the dollar, for instance. “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,” said David Marcus, head of the Libra project to a banking seminar, according to information provided by Business Insider.
“What we care about is the mission and there are a number of ways to go about this,” said Marcus. The creation of a new synthetic global currency is a major concern for policymakers and regulators around the world, that are concerned that this could represent a risk for the global financial system, threatening users’ privacy and opening room for money laundering.
“We’ve always said that we wouldn’t go forward unless we have addressed all legitimate concerns and get proper regulatory approval. So it’s not entirely up to us,” said the executive regarding the launching date of Libra – previously scheduled to June 2020.