May 15, 2021

Libra plans to launch fiat basket-based stablecoin

Libra plans to launch fiat basket-based stablecoin

Representatives of the cryptocurrency project Libra from Facebook reported that the prospects for the release of stablecoin based on fiat baskets are still present, but the initiative needs to be more carefully worked out in order to prevent legal inconsistencies and other problems.

So far, the company does not name the release dates for the coin, but declares that it will definitely see the light of day.

Libra can return to development?

“We never said we were giving upstablecoin based on a fiat basket. The initial plan, which was negatively received by central banks, was not supported by some investors. Now we are developing a more mundane project development plan. When exactly it will be possible to make his announcement is still unknown. We will take special borrowing rights as a basis, which remain an important structural feature of the project. It is also planned to settle all legal issues in advance so that in the future they will not be faced with in the form of proceedings with the Securities Commission and other departments ”“Said Julien Le Gock, director of policy for Libra.

Also in the Libra Association noted that the companyconstantly in dialogue with central banks, which provide information on changes in legislation. Such interaction in the future will allow the project to quickly join the financial industry and not attract too much attention, as it did at the beginning of this year.

Structural changes are also being studied.Libra management. If the initiative receives support, then it can become a public-private project, collaborating with the governments of several states.

The Birth of Libra

Facebook Libra Project Announced In Summerlast year. Then Mark Zuckerberg said that stablecoin will have the support of a fiat basket, consisting of many currencies. This was supposed to ensure the launch of a full-fledged analogue of the banking system, where all assets interact with each other. The difference from fiat operations was to be the minimum commission or their complete absence.

Subsequently, the Libra Association in the updatedwhite paper announced plans to develop several stablecoins, each of which will be supported by a different fiat. Despite the prospects of the project, it has not been possible to implement to this day.

Mark Zuckerberg hoping to get approval forthe launch of Libra even communicated with representatives of the Senate. During the hearing, he promised that the project would not be implemented until it began to comply with US law and legal regulations relating to the financial market.

In the end, Zuckerberg decided to stop providingdirect impact on the Libra Association, making the initiative completely independent. Many experts then noted that it was interaction with Facebook that could make Libra the largest cryptocurrency in the world.

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