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Facebook might peg its currency to national currencies


David Marcus made new statements about the future of the Libra project.

According to Marcus, the Libra project can use several different cryptocurrencies instead of single cryptocurrency. This can make Libra much more useful.

Facebook’s Libra project was normally expected to be supported by a single digital currency. However, according to Marcus, this situation may change over time.

National banks consider this plan as a part of a dangerous end-run around their regulatory authority and have been holding up the project until they could acquire tighter control over how Facebook’s cryptocurrency and payment technology would operate.

According to CNBC news, Marcus said that he is open to new ideas on the subject. Now, in another strategic reversal, Marcus is considering Facebook’s currency in favor of stablecoins tied to the local currency in each market that Libra would operate. Speaking at a seminar, Marcus made the following comments,

“We can follow a different path. Instead of using a single synthetic unit, it can use several different hardcoins. Dollar, euro, pound etc. supported by different stablecoins.”

All of this is happening against the drop in Facebook’s stated launch date of June 2020 for the Libra cryptocurrency. Marcus told Reuters that the launch in June was still the goal, but that the association would not move forward unless it had addressed the concerns of regulators and received the proper approvals.

It is not yet possible to make a definitive comment on the future of the Libra project. However, Libra can be used easily in various countries of the world if it is supported by several different hard coins- as David Marcus has mentioned. It is unclear what impact this will have on today’s financial system.


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