Libra May Change to Many Country-Specific Stablecoins
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.
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