Facebook devalues Libra: it will be tied to a single currency for individual states
The first version of Libra has not yet come out of Zuckerberg's hat, but Facebook is already thinking about version 2.0 of its digital currency. Yesterday the Libra Association - the 22-member organization that is expected to act as the central bank of the private currency - announced a downsizing of the plans that should overcome the resistance of world regulators.
Libra 2.0 will no longer be a stablecoin attached to a basket of coins, but will be divided into a series of currencies linked to local currencies. In other words, there will be a Libra-euro, a Libradollaro, a Libra-pound. It remains understood that for each digital currency issued there will be a corresponding fiat currency which will flow into the reserve managed by the association and to which an unspecified capital buffer will be added. In addition, to prevent Libra from being used for money laundering and crime financing purposes, a financial intelligence unit will be formed.
Finally, a licensing system will be established for those who want to offer services on the Libra blockchain, ensuring centralized control of the activities. However, the association reiterated its intention to launch Libra 2.0 by the end of the year and, sooner or later, to arrive at a multi-currency currency. Otherwise the risk is to cancel Libra's convenience for cross-border payments.
Facebook devalues Libra: the new association