According to blog post by Reuters, Facebook is open to the idea of using currency-pegged stablecoins for its cryptocurrency project, Libra.
David Marcus, who oversees the Facebook Inc. Libra project and CEO of Calibra wallet, in a banking seminar, said that the Libra Association was open to use other alternative such as various currency-pegged stablecoins instead of using a synthetic unit which it initially proposed.
David Marcus said:
“We could do it differently. 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. We could definitely approach this with having a multitude of stablecoins that represent national currencies in a tokenized digital form. That is one of the options that should be considered.”
He stated that the main goal of the project was to create a more efficient payment system and they were also looking for other possible approaches to do so. He added:
“What we care about is the mission and there are a number ways to go about this.”
David Marcus further noted that despite the setbacks the Libra Association had faced earlier this month, they were still aiming to bring Libra live in June 2020 but regulatory hurdles might delay the initial planned launch.
In response to a question about the planned 2020 launch of the Libra project, said:
“We will see. That is still the goal. We have always said that we would not go forward unless we have addressed all legitimate concerns and get proper regulatory approval. So it is not entirely up to us.”
Libra has been encircled by many threats since its launch. It seems these threats are forcing Facebook and Libra Association to change its strategy. On September 21, Facebook announced the composition of its basket according to which, Libra will be comprised of five fiat currencies which include:
50 percent of US dollar and short-term government bonds, 18 percent of Euros and Euro-dominated government bonds, 14 percent of Japanese Yen, 11 percent of UK Pounds, and 7 percent of Singapore dollar.
The month of October has brought many disastrous news for Libra as seven key founding members of the Libra Association have departed from the project. PayPal was the first to leave followed by Mastercard, Visa, eBay, Stripe, Mercado Pago, and Booking Holding.
