Facebook’s Libra cryptocurrency will now be available as a single-currency stablecoin, easing some of regulators’ concerns. Libra was initially supposed to be backed by a basket of currencies, as well as US Treasury securities, but will now be available based on currencies such as the US dollar and the euro.
“We hope to work with regulators, central banks and financial institutions around the world to increase the number of single currency stablecoins available on the Libra network over time and explore the technical, operational and legal requirements for accessing the keep direct contact with them. ” Libra said in a statement.
Libra has been criticized by several central banks, who feared that it could destabilize financial systems. The RBA said Libra had the potential to be more efficient and raised “significant legal and regulatory risks” – including for consumer and investor protection, monetary policy and data privacy.
“The main downside of these changes is that the system is less open and less decentralized, so the Bitcoin community will likely ignore it as another centralized project,” said Yoni Assia, CEO and co-founder of eToro.
“We are happy to see the Libra Foundation take a first step in this direction, supporting multiple on-chain currencies. We believe this marks a new step in the journey towards the adoption of distributed systems in global finance.
