Libra May Change to Many Country-Specific Stablecoins

October 21, 2019 | Digital Assets, Latest News, News

The proposed Libra cryptocurrency could change to a collection of stablecoins, each backed by a different currency.

The Libra stablecoin, which will be backed by a basket of fiat currencies, may change its model. David Marcus, Libra’s head, revealed this at a banking seminar.

“We could do it differently,” he said. “Instead of having a synthetic unit … we could have a series of stablecoins, a dollar stablecoin, a euro stablecoin, a sterling pound stable coin, etc.”

“Many-for-one” Libra stablecoin still on the drawing board

Marcus took care to clarify that Libra had not finalized the new model as its preferred choice and that the proposal was just loud thinking.

“What we care about is the mission, and there are a number of ways to go about this,” Marcus told Reuters after the seminar.

Central Banks jumping into the act?

Recently, in a significant disclosure, Federal Reserve Bank of Dallas President Rob Kaplan said the Fed is “actively looking at and debating” issuance of a US digital currency.

The Fed is likely getting serious about a US digital currency on fears that a new and global cryptocurrency could dislodge the US dollar from its perch as a global reserve currency.

Earlier, Patrick Harker, Philadelphia Fed Reserve president, had said that America’s own digital central bank currency was all but ‘inevitable.’

There have also been reports that the Chinese government was fast-tracking its ‘China coin’ in an attempt to pre-empt Facebook’s Libra stablecoin. Now, rumors are suggesting that the PBoC could launch China Coin as soon as November 11. That date is the day that China’s popular shopping event Singles’ Day occurs.

Regulatory pressures and cracks in the Libra alliance

Libra has been reeling under a global regulatory backlash against its proposed stablecoin, as well as defections from its ranks.

Payments majors Mastercard, Visa, Stripe, and Paypal, have pulled out from the Libra project. Also to depart are Booking.com and eBay.

Will the Libra stablecoin launch in 2020?

According to Marcus, Facebook was still targeting a June 2020 launch of Libra. However, that was now subject to regulatory clearances.

“So it’s not entirely up to us,” he said.

[Related Story: Libra Association chief undeterred by regulatory outcry; says Libra cryptocurrency will launch 2020 ]

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Alt Insights

January 16, 2020

ESG: Lately-turned Tesla Bull Jim Cramer Adds Fink To The Mix

ESG: Lately-turned Tesla Bull Jim Cramer Adds Fink To The Mix
Shape

Latest Alternative Investment News

Digital Assets: In Reforms Push, China Mulling Rules for New Digital Banks, Including by Foreigners
January 17, 2020     Digital Assets, Regulations

China is working on guidelines for the establishment of online-only banks. Chinese regulators are pushing for the establishment of new, 100% digital banks to reduce risk in the country’s financial…

ESG: Cerulli Report Says 2020 To Be “Pivotal” For Retail ESG Investing
January 17, 2020     ESG and Sustainability, Special Reports

New regulations, products, and money will make 2020 a banner year for ESG in Europe Sustainable and responsible investing around the themes of Environment-Social-Governance (ESG) will come into its own…

The DailyAlts Playbook: Short Strategies for Tesla and Apple, where Ken Griffin was on Wednesday, Kyle Bass’ Hong Kong Worries, and the GAO’s Statement on Donald Trump
January 17, 2020     Investments, News, The DailyAlts Playbook

Today, the DailyAlts Playbook talks about short strategies for Tesla and Apple,  where Ken Griffin was on Wednesday, Kyle Bass’ Hong Kong worries, and the GAO’s statement on Donald Trump.

Private Equity: KKR Outlook 2020 Suggests Volatility Ahead
January 17, 2020     Investments, News, Private Equity

Private equity leader KKR released its latest macro outlook this week. Head of Global Macro & Asset Allocation Henry McVey outlines where KKR thinks the best opportunities will be this…