Daily Management Review

Currency-Pegged Stablecoins Could Be Used For Libra Project, Says Facebook


Currency-Pegged Stablecoins Could Be Used For Libra Project, Says Facebook
Having faced with growing and severe skepticism from multiple quarters and regulators over the proposed digital currency of Facebook – Libra, the social media company said that it was ready to use cryptocurrencies based on national currencies such as the dollar in place of the earlier proposed use of a synthetic one.
The main of the launch of the Libra project for Facebook’s digital currency is still to develop a more efficient payments system, said David Marcus, who heads the Libra project for Facebook, while talking in a banking seminar. But he also added that the social media company and the project and those backing the project were also ready to consider other alternatives for the currency token that would be used by it.
"We could do it differently," he said. "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," Marcus told the panel.
"We could definitely approach this with having a multitude of stablecoins that represent national currencies in a tokenized digital form," he said. "That is one of the options that should be considered."
He however was also quick to clarify that his comments were not suggestive that the Libra project is now choosing to use currency-pegged stablecoins.
"What we care about is the mission and there are a number ways to go about this," Marcus told Reuters after the panel, adding that the Libra needed to "demonstrate a lot of agility."
Earlier this month, the exit of some of the major payment companies Mastercard Inc and Visa Inc became big blows to the Facebook-led project. There were exits of other companies backing the Libra project earlier which includes the likes of Stripe, eBay Inc and Booking Holdings Inc and PayPal Holdings Inc.
Worries about the undermining and upending of the global financial system because of the creation of a new synthetic global currency have also been expressed by global policymakers. They are also worried about the potential of Libra to increase opportunities for money laundering and threatening privacy of its users.
An agreement in favor of setting of set strict regulations on cryptocurrencies was arrived at by the finance leaders of the Group of 20 countries. They said that set strict regulations on cryptocurrencies, such stablecoins should not be issued.
While saying that the earlier announced deadline for the launch of Libra could get delayed because of regulatory issues, Marcus also confirmed that the company is still sticking to its goal of launching of the Libra in June of 2020.  
"We'll see. That's still the goal," Marcus told Reuters when asked if the recent departure of several major partners from the project would delay the planned 2020 launch. 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," he said

Science & Technology

Apple to come up with AR glasses

WEF: Big data regulation becomes a problem

Israeli Firm Accused Of Spying By WhatsApp, Lawsuit Filed Against It

Google Used Quantum Computer To Solve Complex Problem

Mars Had Earth-like Salt Lakes

Study: AI is not as profitable as you might think

Porsche, Boeing set to develop flying electric car

Samsung to invest $ 11 billion in new generation displays

US is betting on Nokia and Ericsson to replace Huawei

UPS becomes first to receive full regulatory approval for UAV shipping in USA

World Politics

World & Politics

‘We Are Woefully Underprepared’ As Glaciers Meltdown Leaving Global Water Supply At Risk

US to reconsider medical data security laws

Vale hiding information about problems at Brazilian dams could result in death of 270 people

US Lawmakers Introduce Bill About Xinjiang Uygur Camps In China

European Council agrees to extend Brexit again

Pressure From China Forces Maserati To Dissociate From Film Awards Event In Taiwan

China to replace Hong Kong's Carrie Lam

Iran warns of new reduction in nuclear deal liabilities