Libra
Association Revamps Project to Only Support Fiat-Pegged Tokens
The Facebook-backed Libra
Association, the governing body behind the Libra cryptocurrency project, is
revamping to support fiat-pegged cryptocurrencies on its blockchain, while
dropping its plans for a single cryptocurrency backed by a basket of fiat currencies
and short-term U.S. Treasury bonds.
According to Bloomberg, each
fiat-pegged cryptocurrency will work as a digital version of a country’s
existing currency, and the Association has started talking with Swiss
regulators, and hopes to register with the Financial Crimes Enforcement
Network in the U.S. as a “money services business.”
Christian Catalini, head
economist for Facebook’s Calibra, noted that which currency will be used
according to its need, as when sending money across borders the
“multicurrency Libra could be a better option, whereas the single-currency
stablecoins would make more sense for everyday purchases in a consumer’s home
country.”
Dante Disparte, the Libra Association’s
head of policy, was quoted as saying:
“We’re working toward a late 2020 readiness
timeline.”
The original Libra project
faced criticism from regulators, who worries it could usurp central banks’
financial sovereignty, to the point several founding members – including
PayPal, Visa, and MasterCard – left the Association.
Disparte noted that the
Association’s members have contributed financially to the Association’s
operations, with Facebook providing less than 10% of the total.
