The Libra cryptocurrency project from Facebook has been moving at full speed in a global financial regulation systemlarge for a while now. yesut might be trying to change course later finally realize That the iceberg will win.
For a report on Tuesday in information, sources say that the Libra Association backed by Facebook will still deploy the core product for everything: Libra, a blockchain-based cryptocurrency that would be managed by a global consortium of financial and e-commerce companies … But now it is also expected. that digital equivalents of other currencies issued by the government, such as the US dollar and the euro, that would work within the Libra payment network are also implemented. Facebook, the key partner in the company, will still launch a digital wallet (Calibra) where users can store Libra. But sources of information said Facebook has now decided that Calibra will also work with digital currency equivalents and that it will “emphasize” those on Libra at launch.
In addition, while Facebook intends to integrate Calibra with WhatsApp subsidiary and its Messenger platform, the Calibra platform may also be blocked by regions in some places to prevent users from making transactions in anything other than local currencies. While Calibra was tentatively scheduled to launch in June, sources of information now say it has been delayed until October.
Facebook originally announced Libra in June 2019, with plans that it would be backed by a amount of international currencies and various assets (making it a “stable currency”, supposedly proof of wild fluctuations from other cryptocurrencies like Bitcoin). The whole plan for Libra was largely predicate on the use of billions of users of the social network to Take it to scale. This release has fallen assault of financial regulators all over the planet, who are understandably worried that a company known for its endless series of screwings could be trying to throw a hidden financial system beyond your control.
There were rumors last month that the Libra Association was planning link its value to the US dollar, thinking it could ease the concerns of US regulators. UU., Suspicious of Facebook launching private currencies backed by foreign reserves. Offering digital equivalents of currency issued by the government is a much larger concession, the information said. If local alternatives are available, users could simply choose … not to buy Libra at all.
In addition, the regulatory environment facing the project has not diminished and has probably become more hostile over time. thanks to the plan pure audacity. In September 2019, an official of the European Central Bank accused the Libra Association of be “like a poster”. In October 2019, a Group of 7 work groups Projects declared as Libra could wreak havoc across the planet and should not continue until regulators concerns (including their potential use in money laundering and terrorism, privacy guarantees, how it would be taxed and what financial services Facebook intended to build around) were addressed.
Facebook CEO Mark Zuckerberg appeared before Congress in October 2019 in an attempt to soften things; the mainly grilled about the multitude of scandals facing his company instead. According to Bloomberg, Treasury Department officials have continued to annoy Facebook and the association on the whole issue of money laundering, while some involved in the project have worried that the Securities and Exchange Commission can declare Libra as a security. That would be a nightmare for Libra, which would turn from a payment network into something much harder to handle..
Several of the sponsors of the highest profile Libra Association, such as PayPal, eBay, Stripe, Visa and Mastercard have rescued. It’s still unclear why, unlike most of the competitor’s payment networks, Facebook and the association decided tor go with a blockchain based currency at allat least regardless the power of buzzwords. How Ars Technica noted, while Facebook moved away from its vision of Libra as a “decentralized and fully open network” in an attempt to satisfy regulators, it also introduced potential new obstacles, such as having to examine external developers or comply with local law in hundreds of countries
“The Libra Association has not altered its goal of building a global payment network that meets the standards, and the basic design principles that support that goal have not changed or have the potential for this network to foster future innovation,” a Association spokesman told Ars Technica.
It seems that everything is going well and there is no need to panic; Libra only needs everyone to get on deck and put on a life jacket, only in the unlikely event of such a situation.