At the first mention of the proposed Facebook stablecoin Libra, expectations were high and people looked forward to the launch. So far, the Facebook foundation has not been able to release the stablecoin due to different issues the proposed coin is facing with regulations.
Facebook Currency – Though this hindrance has not deterred Facebook to abandon the Libra project, instead they are postponing the release, modifying the project and developing a new feature that is projected to allow the company to finalize details on the release of the asset.
Facebook Libra Project – Initially projected to be a universal stablecoin that would run in the same league as other similar payment solutions, Libra coin did not have a clear term as to what it was and regulators could not approve the proposed cryptocurrency due to is. There was also the issue of safety on user’s information due to Facebook’s past with handling information. Also is the belief that Libra coin would challenge the significance of conventional currencies in other countries.
Facebook Remodifying Its Stablecoin Release Approach
Facebook Coin – Facebook is currently restrategizing on its approach. Rather than going through with the previously established model, it will be rebranding Libra coin as a cryptocurrency supported by government-issued fiat currencies to win over regulators.
Facebook Libra Project – This is aimed at attaining the projected release date of the coin, which is scheduled to be towards the end of 2020. Also, the branding will make the proposed stablecoin more appealing to those in other countries where it would be offered.
Facebook Coin – also they plan to redesign their wallet, Calibra, to include existing cryptocurrencies and conventional currencies that users can use to carry out transactions. Regardless of if they are running on WhatsApp or Facebook, the new model will make payment more flexible for users who want to transact online. Facebook Libra Project – notably, Libra Coin will still be among the project, though more assets will be added to lessen the role that the original stablecoin was projected to execute for Facebook.
New Model to Include Other Assets and Conventional Currencies
Facebook Currency – the new modification is also projected to roll out at the end of 2020, at the same time Libra Coin is scheduled to launch. While this new Libra coin plain is some steps down from Facebook’s previous plan to completely avoid the conventional banking system via its new universal currency, this step down may see Libra Coin getting approval. Commenting on this, the head of policy and communications at the Libra Association went thus:
“The Libra Association has not altered its goal of building a regulatory compliant global payment network, and the basic design principles that support that goal have not been changed.”