Facebook looking at an Alternative approach for Libra to be used

Christopher ZeniosChristopher Zenios25/10/20192min
After much scrutiny from lawmakers and setbacks with the withdrawal of initial partners like MasterCard, Visa and PayPal, Facebook is facing scepticism about Libra and how it could be used.

On Sunday the 20th of October, Facebook mentioned that the project could use cryptocurrencies based on the dollar, euro or sterling, instead of the one they initially set out to propose.

Head of Libra, David Marcus said that the objective for Libra is to “create a more efficient payments system” but it was open to alternatives approaches.

Marcus expressed:

We could do it differently, instead of having a synthetic unit, we could have a series of stable coins, a dollar stable coin, a euro stable coin, a sterling pound stable coin… We could definitely approach this with having a multitude of stable coins that represent national currencies in a tokenized digital form, that is one of the options that should be considered.

He clearly stated that the main mission is their concern and they can go about accomplishing it in numerous ways, and to do this Libra needs to show agility.

Regulators have stressed their worries regarding the creation of a synthetic currency that could disrupt the global financial system, facilitate money laundering or even threaten user privacy.

Finance leaders have set strict regulations on digital currencies and also stated that these stable coins should not be launched unless the global risks were first addressed.

In the meantime, Facebook wants to launch in mid-2020 but is aware that this target may delay further due to regulatory stepping stones and the departure of several major partners.

On this matter Marcus stated:

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.

 

Image Source by verdict.co.uk

Christopher Zenios

Christopher Zenios

Christopher has always been a pioneer, a first adopter when it comes to technological advancements. Over the years, his expertise surrounded the real estate and digital markets and their evolution in today's society. After being the editor to various professional business news portals and blogs, he was selected to become the chief editor for HWC.



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