Facebook is said to be opening the idea of using national-pegged stablecoins for its upcoming Libra project.
According to Reuters on October 20, David Marcus, head of the Libra project and Calibra said that Libra could use a variety of fiat-based stablecoins, instead of the originally proposed token.
Speaking at a banking conference on Sunday, Marcus stated that the main goal of the project was to create a more efficient payment system and that it did not object to the consideration of alternatives. Marcus says:
We can do it differently, he said. Instead of having a combined unit ... we can have a bunch of stablecoins, a stable dollar, a stable euro, a stable pound, etc. ... We can totally approach that. This with countless stablecoins that represent national currencies in the form of encrypted digital ... That's one option that should be considered.
If this happens, it will be like the USDT, USDC, TUSD we are trading on the exchanges, far away from Libra's ambition to create a currency to compete with USD, GBP.
And if it's like this, it's easy, it's similar to the growing JP Morgan and Walmart.
A hostile legal environment
Marcus reported noting that the aforementioned stablecoins are not the preferred option of the Libra Association, but they will adapt.
The Libra Association, which manages the project, has lost several key members in recent weeks, including major e-commerce and payment companies such as PayPal, Visa, eBay, Mastercard and Stripe.
According to US Treasury Secretary Steven Mnuchin, companies have left the Libra Association because the project did not meet US anti-money laundering standards.
Indeed, Libra continues to face pressure from global regulators, who are voicing increasing skepticism about the project and its impact on global financial stability. .
Finance ministers and central bank heads from G20 countries have recently raised concerns that global stablecoins could negatively affect the sovereignty of monetary policy, especially in countries. Households are developing. On October 18, Federal Finance Minister Olaf Scholz said global regulators should stop the release of Libra.
Facebook CEO Mark Zuckerberg will testify of the project before the US House of Representatives Financial Services Committee on October 23.