Facebook to Develop Several Fiat-Pegged Digital Currencies in Addition to Libra
Mar 4, 2020 at 3:13 pm UTC by Tolu Ajiboye · 3 min read
Facebook has changed plans for crypto and has decided to develop and issue multiple digital fiat-pegged assets in addition to Libra.
Facebook Inc (NASDAQ: FB) has had a rough time with regulatory authorities and the U.S. government since it announced plans for a digital currency. When Facebook unveiled plans for the Libra, it probably did not expect the amount of backlash it got in response. Many institutions were worried about the power the Facebook company has and how it could affect how money is used. Governments were also worried about monetary sovereignty and how the Libra could disrupt this. Also, the U.S. government said it simply didn’t trust Facebook to handle a far-reaching project like this. Now, Facebook is changing plans for the Libra.
Facebook Revamps Libra
After a long period of silence, Facebook has revealed how it plans to move forward with the Libra. According to a recent report published by The Information, Facebook seems to be trying to appease the world’s governments with newer offerings. The social media giant has now said that it will create several different digital tokens that will serve as stablecoins. These new tokens will be pegged to several different fiat currencies including the dollar and the euro.
The Information said that three unnamed persons familiar with Facebook’s plans have confirmed that the company’s Calibra wallet for the assets will also continue. In the beginning, Facebook created Calibra for just the Libra. Now, it will support all tokens created by the company. This means that Calibra users will have direct access to the tokens, right from the wallet. Facebook has not specified how many tokens it is developing.
Calibra was also slated for release in June. However, Facebook has postponed the launch until October. It is also quite likely that Facebook will release the tokens around the same time too. Also, the release might not be available worldwide. Calibra will likely initially be available in countries with digital representations of their currencies.
Facebook Not Abandoning Libra
Initial reports suggested that Facebook was completely abandoning the Libra and stepping away. However, this information is incorrect. In an update, The Information has clarified that Facebook has no plan to discontinue developing the Libra. Facebook intends to continue with the Libra side-by-side with the new tokens. In a statement to The Verge by Facebook, a spokesperson confirms this.
“Reporting that Facebook does not intend to offer the Libra currency in its Calibra wallet is entirely incorrect. Facebook remains fully committed to the project.”
At the moment, it is unclear whether or not this new move would be enough to pacify governments who are already displeased by Facebook. At the time, the company announced the Libra Association as the nonprofit organization responsible for Libra and Calibra. The move was probably in anticipation of the backlash, as a way to distance itself from direct involvement with Libra. However, the backlash caused more than a few initial members to abandon the association.
For now, the world awaits the authorities’ reaction to the new development.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
When he's not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
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