Facebook’s Libra Project Plans Have Been Scaled
As the criticisms continue, Facebook has been unable to provide any updates for months. Yesterday, it announced remarkable changes to scale back its global payment system.
The most remarkable of the changes is a shift from the creation of an open international financial network to instead offer both single-currency and multi-currency coins to be tied to local currencies.
Part of the update is the replacement of the initial planned system without permission with a market-driven network characterized by openness and competitiveness. Besides, a network-level system to implement anti-money laundering is also included.
David Marcus of Facebook in charge of cryptocurrency development commented about the updates on Twitter yesterday:
“Excited with the progress of Libra in the last 9 months. I keep on thinking about all the people and small businesses that could benefit from the Libra Network already being operational — especially now during these times of unprecedented hardship.”
According to Marcus, the funding of the Libra Association is now by its members while Facebook contributes below 10 percent, and has adapted its plans after engaging with key stakeholders globally. As of now, the Libra Association is made up of 22 members, including Lyft, Uber, Spotify, Shopify, Coinbase, as well as others.
Congressmen in the United States have been questioning the appropriateness of Facebook having a currency. Similarly, regulators have expressed concerns over Libra’s initial plans.
Aside lawmakers, the majority of the initial partners of Libra seem unsure about the chances of the stablecoin. Six months ago, PayPal ended its participation in the Libra Association after the United States and European lawmakers raised regulatory scrutiny.
Besides PayPal, the initial partners who ended their partnership on the Libra project include Visa, Mastercard, eBay, Stripe, Vodafone, and Mercado Pago.