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Facebook Proposes Stablecoins For Libra Project

Amid uncertainty over Libra, Facebook is looking at alternative approaches. David Marcus, head of the Libra project, has reportedly proposed a plan to issue a series of stablecoins as a replacement for of a combined one. Marcus reportedly told a group of bankers during a seminar hosted by the Group of 30 in Washington that Facebook’s main goal was to provide better payment options. He asserted that the company was open to alternative approaches for the currency token of the project. He said the project is likely to be launched in June 2020. The development comes amid some of the world’s biggest economies raising a concern about such cryptocurrencies posing a risk to the global financial system.

Moreover, Marcus iterated the company’s commitment to work with regulators to address all concerns related to Libra. He assured officials, who are threatening to block Facebook’s proposed digital currency, that Libra would not be controlled by a single company. He said this after France’s Economy Minister Bruno Le Maire raised a concern that it would give a company power to challenge a government’s control of its currency. “It has been very clear ever since the project started that a payment network such as the Libra should not be controlled by a single company,” said Marcus. Libra Association is comprised of 21 companies. Marcus said that competition to strive for the lowest possible cost for consumers is always welcomed by the company.

Earlier, Libra cryptocurrency faced a roadblock after MasterCard, Visa, Mercado Pago, Stripe, and AEBay, abandoned it. This came as a huge setback for Facebook as MasterCard and Visa were among some of the strong supporters of the Libra project. Even Marcus tweeted about it and accepted that the move was not a piece of great news for them. Several banks have already warned Facebook against its digital currency ambitions. The Libra Association, which originally had 28 founding members, has now just 21 companies backing it. However, some new investors like IBM have expressed their desire to work with Facebook on Libra cryptocurrency.