The pressure around Libra can be best seen in our latest Libra coin news. The latest updates show that the pressure continues to pile up on Facebook and that the social media giant is still determined to forge ahead with its grand crypto ambitions. Now, Facebook wants a series of stablecoins for the Libra crypto projects as part of its latest plan.
Yesterday, the Libra Associaton said that it was considering basing its cryptocurrency on a range of fiat currencies instead of one synthetic one. As Reuters reported, the project lead David Marcus then said that the team is open to looking at alternative approaches following an avalanche of criticism and the defection of several major partners.
Marcus confirmed that Facebook wants big things and then stated:
“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 stablecoin, etc. We could definitely approach this with having a multitude of stablecoins that represent national currencies in a tokenized digital form.”
As we can see, the original plan was to have Libra pegged to a basket of fiat currencies which the consortium would hold and control themselves. The regulators and bankers around the globe saw this as a major threat to sovereignty and their own abilities to manage the monetary policy.
The pressure was also too much for a number of key project partners including PayPal, Stripe, Visa and Mastercard, all of which decided to withdraw and leave the project with just one payments platform remaining. The US senators threatened severe action against the companies associated with the ambitious crypto project.
Facebook wants a stablecoin pegged to other coins – but that does not change the fact that there are many concerns that such currency could be used for money laundering since the banks would not be able to monitor the capital flows. Last week, the G7 group of nations issued a report outlining a number of challenges and concerns that they had over the project. The Libra Association replied and stated that there was nothing to worry about and all of the issues would be addressed.
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