Libra’s Regulatory Pressure Increases As Facebook Ponder Whether to Change the Project

Libra’s Regulatory Pressure Increases As Facebook Ponder Whether to Change the Project

With further regulators continuing to mount the pressure onto Facebook’s upcoming cryptocurrency, Libra, the team at the project is pondering whether they should move from its planned launch of the stablecoin. David Marcus, the CEO of Libra mentioned that this during a banking seminar on Sunday. Marcus said that they might instead launch several stablecoins pegged to single fiat currencies.

This is following the agreements between the world’s economies who have agreed that Libra, or any other stablecoin for that matter, shouldn’t be allowed to launch until worries on the safety of stablecoin are from lawmakers. The launch date of Libra is set to be the second half of 2020 in order to give enough time to address these concerns but regulators don’t seem to be satisfied with the team’s explanations. 

As a result of the regulatory pressure, several allies of Facebook’s Libra decided to leave the project. This includes firms like Mastercard, Visa and even PayPal. 

Binance’s CEO has given his views on the matter saying that the basket of Libra won’t work due to many reasons. Speaking on Twitter, Changpeng Zhao said:

“Baskets won’t work for many reasons. Facebook could 1, accept the top 10 cryptos to get users and regulators warmed up, then slide in Libra. Or 2, geofence opposing regions, including US, to get started. Or 3, say “Libra doesn’t care” and push on…”

It will be interesting to see whether Libra even sees launch at all at this point. 

The regulatory pressure and security worries over the stablecoin are enough to drive anyone crazy but it will surely be interesting to see whether Facebook’s latest project gets released at all.

It will be interesting to see how this situation plays out. For more news on this and other crypto updates, keep it with CryptoDaily!

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