Facebook is making significant changes to the framework for its Libra cryptocurrency. The Libra will now be digital versions of several fiat currencies, backed individually. This is expected to appease regulators worldwide, who have kicked against the project since it was first announced.
Months ago, Facebook CEO Mark Zuckerberg had told U.S. regulators that the project would not launch until it receives regulatory greenlight. The decision-making body of the project, The Libra Association, eventually succumbed and decided to move forward with the project, with a version that regulators will find agreeable.
Already, the Libra Association is in conversation with Swiss authorities, as it hopes to receive a payment license for the project. Libra Association head of policy Dante Disparte has said Libra also intends to register with the U.S. Financial Crimes Enforcement Network (FinCEN) as a money services business. While there is no official launch date yet, Disparte has also said the Association plans to launch the project towards the end of 2020.
When Facebook first announced Libra, the plan was for the asset to be one currency, but backed by a basket of fiats. Authorities in many countries announced their displeasure with this plan as they feared it could damage the power of their respective fiats.
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