David Marcus, Head of Libra, suggested an alternative approach to the project’s development. They might “do it differently” after all.
Explaining the deviation, he said that Facebook’s Libra might change to reconsider its model.
“Instead of having a synthetic unit … we could have a series of stablecoins, a dollar stablecoin, a euro stablecoin, a sterling pound stable coin, etc,” Marcus told the panel at a banking seminar.
This approach might help Libra to rival the localized stablecoin “Venus”.
To remind, back in August 2019, Binance, the cryptocurrency exchange, announced Venus. And they called it an “independent, autonomous and regional version of Libra.”
Why is Facebook’s Libra going after multiple stablecoins?
By pegging Libra to currencies, Facebook could avoid seeking regulatory permission. After all, countries like Japan are on the verge of giving stablecoins a legal status. Other countries might follow suit.
As told to Reuters there are a number of alternatives in front of the association to realize its mission. And at this point, it needs to “demonstrate a lot of agility”.
“What we care about is the mission and there are a number ways to go about this,” Marcus told Reuters.
Marcus further added that the launch date of Libra stands to be July 2020. But in case of further regulatory upheaval, it might get pushed.
The Facebook-led project is being grilled across the US and Europe. Particularly, by regulatory bodies. And the impact is visible as 7 of its major high-profile supporters have quit the consortium.
Amidst all the opposition, Libra is progressing. And it has supporters, like Raoul Pal, an investment strategist. According to Raoul, digital currencies like Libra can help countries to avoid the currency war impact.
But Libra is still missing a strong lobby from regulators. Feel free to share your thoughts about Libra’s changing approach.