Facebook Considering Currency

Following the departure of several major backers of Facebook’s Libra cryptocurrency, Reuters is reporting the social media giant is considering a compromise.

Initially, Facebook proposed a synthetic unit for the cryptocurrency. The company’s efforts have been met with widespread suspicion and criticism from governments around the world. In what is no doubt an effort to ease the concerns of regulators, not to mention attract other backers, Facebook has voiced an openness to using cryptocurrencies based on national currencies.

According to Reuters, Libra project head David Marcus, told a banking seminar that the group was looking at alternative approaches.

“We could do it differently,” he said. “Instead of having a synthetic unit … we could have a series of stablecoins, a dollar stablecoin, a euro stablecoin, a sterling pound stable coin, etc.”

Whether a Libra cryptocurrency based on stablecoins would be enough to satisfy concerned regulators and legislators remains to be seen. Either way, Facebook is still shooting for a June 2020 launch, although Marcus acknowledged that government concerns could delay it.

When Reuters asked if the departure of prominent backers would impact the launch date, Marcus said: “We’ll see. That’s still the goal. We’ve always said that we wouldn’t go forward unless we have addressed all legitimate concerns and get proper regulatory approval. So it’s not entirely up to us,” he said.”