Facebook is said to be amenable to the idea of using stablecoins pegged to national currencies for its Libra project. The plan to use fiat-based coins instead of the tokens initially proposed was brought up by project head David Marcus.
Marcus was one of the speakers at a recently held banking seminar. He allegedly said that the project’s ultimate goal was to develop a more efficient and effective payment system. He also claimed they were not averse to looking at alternative solutions.
Work with Stablecoins
The CEO of wallet service Calibra acknowledged that the company could go a different route. He said that instead of focusing on a synthetic unit, the Libra project could work with a series of stablecoins.
Marcus even said that having various national currencies in a tokenized digital form is one option that should be carefully considered.
The original proposal for Libra called for the token to be backed by a variety of national currencies. These currencies include the Euro, the British pound, the Japanese yen, the Singapore dollar, and the US dollar.
The Libra head emphasized that the company cared deeply about their mission and said there are several options they can choose. He also noted that the stablecoins mentioned were not the preferred choice by the Libra Association but admitted that the token should be agile.
The Libra Association is the body that will govern Facebook’s proposed stablecoin. It has recently lost many crucial members these past weeks, including major e-commerce companies and payment firms like Booking Holdings Inc., eBay, Mastercard, PayPal Holdings Inc., Stripe, and Visa.
Steven Minuchin on the Topic
US Treasury Secretary Steven Mnuchin claimed these companies left the Libra group because Facebook’s latest project does not meet US Anti-Money Laundering standards.
Libra is admittedly facing unremitting pressure from regulators around the world. These financial governors have voiced their increasing doubts over the project and its potential impact on the world’s financial stability.
Financial ministers from the G20 countries and the heads of their central banks have recently expressed their worries about the issue. They said global stablecoins could harm the sovereignty of monetary regulations, particularly in developing countries.
This particular concern has prompted Germany’s Federal Minister of Finance, Olaf Scholz, to say last Oct. 18 that global regulators should outright deny Libra.
G20 financial leaders have also recently agreed that they would set strict policies on digital currencies. Stablecoins will reportedly not be issued until the different global risks are addressed successfully.