Facebook cryptocurrency
May 16, 2020
Matt High

Facebook to rethink Libra plans

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Facebook is considering rethinking its Libra project due to possible regulatory concerns

It was reported by Bloomberg on 3 March that the social media...

<h3>Facebook is considering rethinking its Libra project due to possible regulatory concerns</h3>

<p>It was <a href="https://www.bloomberg.com/news/articles/2020-03-03/facebook-weighs-libr… by Bloomberg</a> on 3 March that the social media giant and its partners are mulling over a redesign of its Libra cryptocurrency project.&nbsp;</p>

<p>Libra was originally launched under the vision of Facebook having its own payment network with a native stablecoin and developing a single digital currency&nbsp;- at that stage, Facebook was broaching early discussions with companies such as <a href="https://www.visa.co.uk/">Visa</a&gt;, <a href="https://www.mastercard.co.uk/en-gb.html">Mastercard</a&gt; and <a href="https://www.firstdata.com/en_gb/home.html">First Data</a> around the project.&nbsp;</p>

<p>Under these plans, <a href="//www.facebook.com">Facebook</a&gt; intended that Libra would allow anyone worldwide to send money anywhere with few steps and a very simple process.&nbsp;</p>

<p>This vision came into question&nbsp;subsequently, as Facebook and Libra faced some opposition from regulators. For example, US lawmakers, according to Bloomberg, voiced concern about the brand's ability to manage a financial network following its failure to protect the data of its users.&nbsp;</p>

<p>Similarly, in October last year several of the world's largest economies warned that Libra&nbsp;and other cryptocurrencies posed a risk to the global financial system. France, for example, said it threatened the "monetary sovereignty" of governments.&nbsp;</p>

<h4>Rethinking Libra</h4>

<p>According to Bloomberg, Facebook's rethink of Libra revolves around considering whether the network would accept multiple coins - including those that are issued from central banks.&nbsp;</p>

<p>The new source referenced three people "familiar with the matter", who stated that Facebook was looking at a revamp. They added that the dream of a single global coin "isn't dead" and the the new plan "could expand, not pull back from, the original version".&nbsp;</p>

<p>&nbsp;A statement from Dante Disparte, Head of Policy and Communications for the Libra Association, said "The Libra Association has not altered its goal of building a regulatory compliant global payment network, and the basic design principles that support that goal have not been changed."</p>

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<p><strong>SEE MORE:&nbsp;</strong></p>

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<li><a href="https://www.fintechmagazine.com/magazine/fintech-magazine/january-2020"… the latest edition of FinTech Magazine, here</a></li>
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<p dir="ltr"><em>For more information on all topics for FinTech, please take a look at the latest edition of&nbsp;<a href="https://www.fintechmagazine.com/magazine/fintech-magazine/august-2019">… magazine</a>.</em></p>

<p dir="ltr"><em>Follow us on&nbsp;<a href="https://www.linkedin.com/company/12590624/admin/">LinkedIn</a>&nbsp;and… href="https://twitter.com/fintech_mag?lang=en">Twitter</a>.</em></p&gt;

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