On Sunday, due to increasing skepticism about its digital currency project, Libra, Facebook said that instead of using synthetic currency the project could use cryptocurrencies based on national currencies.
David Marcus, head of the Libra project, in a bank seminar, told that the main aim of the project is to make an efficient payment system. To achieve this goal, the project is open to different approaches for the currency token. He added, they could use a series of stable coins such as dollar stablecoin, euro stablecoin, sterling stablecoin, and others instead of synthetic unit. Also, they could approach the issues by issuing a tokenized digital form of the multitude on stablecoins representing national currencies. This is one of the options that they are considering.
He further clarified that the currency-pegged stablecoins are not group’s preference but rather an option.
Earlier this month, the Libra project suffered, as two more members of its board and major payment companies Visa Inc. and Mastercard Inc. quit. Before these two companies, other members including eBay Inc., Booking Holdings Inc., PayPal Holdings Inc., and Stripe also left.
In addition, Libra is facing a lot of scrutiny by global policymakers and regulators. As they have also shown a hint of worry for the creation of a new synthetic currency. The currency could facilitate money laundering, threaten users’ privacy, and the global financial system.
On Friday, a panel of 20 finance leaders agreed to impose strict regulations on cryptocurrencies. By saying that, the stablecoins should not be issued unless the various risks are addressed. Marcus said that they will go forward once all the legitimate concerns are addressed and they will receive proper regulatory approval.
Despite all the regulatory hurdles faced by Libra, Facebook is still aiming to launch Libra by 2020.