Dante Disparte believes that Libra is finally ready to enter the digital money race, despite that some believe the whitepaper had the goal to threaten the monetary authority of governments and central banks. Let’s read more in the following Libra news.
The updated version of the Libra white paper from April 2020, took a fresh approach to regulatory compliance according to Dante Disparte who is the head of policy and communications at the Libra Association. The document outlines a pending payment license through the Swiss Financial Market Supervisory Authority which can prepare Libra for entry to the Digital Money race. Libra is watering down on the global stablecoin market up to a series of a fiat-backed stablecoin which prompted several commentators to say that the project even lost its soul.
Libra has been written off many times by crypto traders and there were some that called its revamp insufficient. Whatever you think about Libra’s positioning and its updated white paper, Dante Disparte believes that the effort that the platform made triggered the ‘’space race’’ regarding the central bank digital currencies. He said:
“When they [central banks] take the leap beyond wholesale, which is where most CBDC work is going, and start thinking about retail applications, then we will be in a better world for the fact networks like Libra exist.’’
According to the updated white paper, Libra believes that ‘’these CBDCs could be integrated with the Libra Network’’ which will inevitably remove the need for the Libra Networks to manage the reserves which will reduce the credit and custody risk. It could also become possible to offer the central bank of Ghana, for example, a way to create a cross-chain trading window so the user-level applications will become interoperable. As well as shaking up the central banks, Libra spawned direct competitors such as the Celo Alliance and the Mojaloop Foundation which claims to interconnect forms of mobile money in Sub-Saharan Africa and India.
However, with China in the game where you have Alipay and WechatPay, People’s bank of china and the digital payments effort are serving hundreds of millions of users. The platform appears to be extending to the US by offering a way to get a CBDC for every consumer.
“I think there would be nothing better for the world and for poverty alleviation if, in fact, we started to trigger a bit of a space race on compliance to address the 1.7 billion people who are unbanked and underbanked. So from my point of view, there is no monopoly on this work. Let others enter this process and let the race begin.”
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