The Strategist

Facebook to rethink Libra project

03/06/2020 - 05:12

Facebook's Libra cryptocurrency will not be the central element of the payment system of the same name, the company said. The original concept was rejected because of the claims of watchdogs in the summer of 2019. However, Facebook said the company remains “fully committed to the project.”

Marco Verch via flickr
Marco Verch via flickr
According to The Information, the social network also postponed the launch of the Calibra cryptocurrency wallet from summer until October 2020. The wallet was supposed to become the basis of the system. According to the updated concept, the wallet will support several currencies besides Libra.

Bloomberg writes that Libra, announced as stablecoin (a digital currency secured by stocks of ordinary currencies or physical goods), could turn into a payment network that accepts various digital currencies, including those issued by central banks of various countries.

In particular, Facebook wants to offer support for the dollar and the euro. Experts interviewed by Bloomberg pointed out that if Libra becomes a more traditional system, users may not see the difference between the blockchain network and existing solutions for money transfers and payments. Meanwhile, Visa, MasterCard, eBay, PayPal and several other companies involved in the Libra association at the initial stage of the project left it soon after accepting the invitations.

Facebook’s plans to launch its cryptocurrency in the second half of 2020 attracted attention of regulators almost immediately after the project was announced. Watchdogs turned attention to Libra due to Facebook’s poor reputation for personal data security. In addition, regulators fear that the cryptocurrency will be used for money laundering and other criminal purposes.