Facebook’s crypto endeavor, Project Libra might be getting a makeover in order to help overcome the regulatory ordeal that the social media giant and its proposed stablecoin have landed into. Reportedly the platform now is open to the idea of pegging its crypto coin to the national currency.
According to a Reuters’ report on October 20th, David Marcus, Facebook’s head for project Libra and CEO of Facebook’s wallet service Calibra, revealed this new course of action while speaking at a banking seminar.
The company’s new probable course is a total reverse from its original plans, according to which the digital currency project was to be pegged to a synthetic currency, tied to a basket of global currencies. In the face of growing skepticism regarding project Libra, Marcus announced on Sunday that Facebook’s crypto initiative could use cryptocurrencies based on national currencies such as the dollar as opposed to the synthetic one it initially proposed. He told the panel:
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.
He assured the group of bankers that the fundamental aim of the behind Libra was nothing more than creating a better payments system, and if that requires the company to take an alternative approach instead of the originally proposed structure of the project, then Facebook and the Libra Association would be willing to consider it. Marcus further added:
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.
While sharing that the aforementioned stablecoins were not the preferred options of the Libra Association, Marcus also emphasized the importance of agility which is what the projects need to personify in order to tackle the hostile regulatory environment and to accomplish its mission.
Facebook representatives have mentioned time and time again that they aren’t going to proceed with project Libra until they have managed to appease all the legitimate concerns of regulators. However, that seems to be growing tougher every day, as global policymakers and regulators are constantly worried that the creation of Libra could upset the global financial system, in addition to threatening user’s privacy and facilitating money laundering.
The announcement comes only days after the project suffered major setbacks when key members as major payment companies Mastercard Inc and Visa Inc amongst others pulled out of the project.