Facebook could change its strategy with Libra
The social network now plans to convert multiple stablecoins of fiat currency from different countries
Facebook’s Libra changes its original plans to create a global currency, as indicated by the social media giant in a recent announcement where it assured that they estimate to convert multiple stablecoins of fiat currencies in several countries.
The plan will be implemented after the group of companies overseeing the project redesigned the libra whitepaper in response to concerns from financial regulators that the effort could undermine the power and control of central banks.
The Association noted that the intent of the initiative is not to compete with countries’ monetary sovereignty but to adopt a more open approach .to support digital fiat currencies and stablecoins.
“While our vision has always been for the libra network to complement fiat currencies, not to compete with them, a shared fundamental concern was the possibility that the multicurrency libra currency would interfere with sovereignty and monetary policy if the network reached on a significant scale and a large volume of domestic payments were made in libra. Therefore, we are increasing the pound network by including stablecoins.”
The new pound whitepaper shows that the project could eventually serve as a platform for central bank digital currencies (CBDC). “For example, if a central bank develops a digital representation of the US dollar, the euro or the pound sterling, the Association could replace the stablecoin of the fiat currency with the CBDC”, as established in the modified document issued by the network of companies.
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