In an effort to gain regulatory approval, Facebook's upcoming Cryptocurrency Balance will now be pegged to individual national currencies and monitored by global watchdogs. The Libra Association recently announced that it will now offer "stablecoins" backed by single currencies such as a Libra dollar or Euro balance and a redesigned digital token based on these currencies. Originally, Libra was to be backed by a mix of currencies and government debt, but central banks and regulators have raised concerns that the cryptocurrency could destabilize monetary policy and help facilitate laundering. The Facebook-run cryptocurrency will be issued and governed by the Libra Association, which has stated that a "college" of central banks, regulators and law enforcement agencies from more than 20 countries established by FINMA's Swiss supervision will determine whether it can authorized as payments. service provider in Switzerland. According to the association's director of policy and communications, Dante Disparte, Balance, which was originally set to launch in late June, will now launch between mid-November and the end of this year.
Additional guarantees
To help combat money laundering and terrorist financing, the Libra Association will register with the Treasury Financial Crimes Enforcement Network (FinCEN) as a money services business, which will likely mean it will need to maintain additional records. Libra will also strengthen protections for the Libra Coin reserve to help it cope with "extreme market distress." The reserve will hold short-term liquid assets with low credit risk and a capital buffer. In a blog post, Michael Engle of the Libra Association provided additional information on the changes he made to his original approach, saying: "We have made changes to our initial approach, many of which deviate from the approaches taken by others. blockchain projects.Our goal was never to imitate other systems, but rather to take advantage of the innovative approach of using distributed governance and distributed technology to create an open and trusted system.By undertaking the difficult work of improving traditional financial systems so that are programmable, interoperable and scalable, we hope to enable others to benefit from our efforts to create not only innovative but also secure and compliant financial applications that can serve everyone." Via Reuters