Facebook has been receiving endless backlashes from regulators around the world since it unveiled its plans to launch a global digital currency dubbed Libra. The social media giant is in a crossroad and has promised it would not launch the cryptocurrency until it has satisfied all regulatory concerns.
Facebook Considering Libra Redesign
With Facebook stuck in the regulatory dilemma, new reports have revealed that the company and the Libra association is considering to redesign the project so that the network can accept multiple currencies, including those issued by Central banks.
“The coins could include those issued by central banks and backed by the U.S. dollar, the euro or other currencies. The association will re-introduce Libra soon,” people familiar with the matter told Bloomberg.
The idea to revamp the Libra project is an attempt to persuade concerned regulators and rebuild momentum for the plan. However, one of the sources said that the dream of the single global currency isn’t dead yet, as the new plan could only expand and not pull back from the original version.
Libra Association Losing Key Partners
Facebook and 27 other companies had announced the project as a way to connect the globe, also circumventing the financial system and as well to reduce the cost of sending money, especially for unbanked populations.
The cryptocurrency would be created from a “basket” of relatively stable assets to support the token, whose value would much blend with the underlying assets’ market value.
The members of the Libra association would be Facebook’s partners in governing the system. However, during the period of severe regulatory backlashes, major partners including Paypal, eBay, Visa, etc pulled out of the association.
More recently though, Coinfomania reported the addition of ecommerce giant, Shopify, to the Libra association. Shopify is expected to pay $10 million as part of the requirements of joining the association.
Regulators Don’t Trust Facebook
Regulators are fearful and believe that the Libra project could disrupt the global financial system. The U.S lawmakers, for instance, said they don’t trust Facebook to manage a financial network referencing with the company’s high profile of missteps in other areas, especially in protecting users’ data. Notwithstanding, Facebook still claims to remain fully committed to the project.
Coinformania had lately reported Facebook’s unconcluded plans on the Libra project, this is as well due to the backlash it has been facing from regulators