Facebook has changed some aspects of its ‘Libra’ project with the idea of getting closer to getting regulatory approval.
The idea that all 2.5 billion users of the platform could start using the currency has raised concerns that the project will undermine currency controls.
Libra’s governing body said it would offer stable coins tied to individual currencies instead of a basket of them, with the token itself being based on currency coins.
The original plan for Libra was to be backed by a number of currencies and government debt. Central banks and regulators feared that this would destabilize monetary policy and support money laundering.
In response, the Libra Association said that a number of regulators and central banks from more than 20 countries, established by FINMA, will be able to determine whether the project will receive a payment processor license in Switzerland.
It is currently claimed that the coin will be released sometime between mid-November and the end of the year. Some countries, including Germany and France, have said they will block the project, while others have set out to create a regulatory framework for stable coins.
Importantly, before Libra, such issues were not discussed at such a high level, and this is certainly a plus for the industry.