The Switzerland-based Libra Association which will issue and regulate Libra intends to launch a single electronic coin backed by the buck, the FT newspaper has said.
The move would represent an even bigger scaling-back of the project’s ambitions than that proposed in April in response to your regulatory and political backlash against the project.
Libra, unveiled by Facebook Inc this past year, was relaunched in slimmed-down form after regulators and central banks across the world raised concerns it may upset monetary equilibrium and hamper mainstream power over money.
The Libra Association, of which Facebook is one of 27 members, is seeking the go-ahead out of Switzerland’s markets watchdog to issue a series of stablecoins backed by individual traditional currencies, as well as a token depending on the currency-pegged stablecoins.
Nevertheless under the human body’s new plan, other coins backed by traditional currencies, as well as the composite, would be introduced at a later date, the FT said.
The Libra Association didn’t immediately reply to a request for comment. FINMA, the Swiss regulator, did not elaborate beyond a statement in April confirming receipt of Libra’s application for a obligations license.
Stablecoins are designed to prevent the volatility standard of cryptocurrencies such as bitcoin, which makes them in concept more suitable for payments and money transfers.
The team at Platform Executive hope you have enjoyed the ‘[post_title]’ article. Initial reporting via our official content partners at Thomson Reuters. Reporting by Tom Wilson in London and Brenna Hughes Neghaiwi in Zurich. Editing by Robert Birsel.
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