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Digital Currency/Stablecoin/Tokenization Series: Facebook’s Crypto-Project Chief Hints At Stablecoin Designing For Libra

Ever since Facebook’s announcement has come in, there’s been a buzz in the cryptocurrency universe, across the various central banks and sovereign governments due to the launch of Libra that has shaken the financial regulators as well. 

They perceive that the Facebook’s crypto-project carries the potential risk factors to their sovereignty and to the functionalities of the central banks across the globe as Facebook has huge global audience. 

Nevertheless, the property of the “digital currency” is driven by a blend of various assets that resembles an ETF type.

The apprehensions were escalated all over the world, including French & German ministries, and two separate US Senate house meeting with David Marcus and the SEC. 

The project is halted for launch as the Senate is awaiting for Mark Zuckerberg’s testimony on their crypt-project at this juncture.

But for now, as per the sources of reuters, David Marcus, who’s the co-creator of Libra, has revealed the panel that Libra’s mission to provide an ‘efficient payment system’ remains intact. Hence, instead of introducing a new currency or asset, they will present a series of stablecoins pegged to individual FIAT.

David Marcus told the panel, “we could do it differently, instead of having a synthetic unit… we could have a series of stablecoins, a dollar stablecoin, a euro stablecoin, a sterling pound stable coin, etc.”

He also appears to be receptive to the perceptions of using fiat-pegged cryptocurrencies and initially proposed tokens.

While they also quoted G7 report in their twitter handle stating that stablecoins recognize the potential of Libra to dramatically improve access to fast, secure and inexpensive payment technology. 

By Niranjan Patil
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