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Technology Facebook's Libra may look to multiple digital coins based on national currencies

18:45  21 october  2019
18:45  21 october  2019 Source:   cnet.com

Facebook's Libra backers reportedly looking to cut ties with cryptocurrency

Facebook's Libra backers reportedly looking to cut ties with cryptocurrency Concerns about Facebook's digital currency keep piling up.

Facebook says Libra would be tied to a basket of low-risk securities and traditional, government-issued currencies , such as the dollar, euro, pound and yen. Expected to be launched in 2020, Libra is described as a blockchain- based digital coin that will let Facebook users send and receive money or

WASHINGTON (Reuters) - Facebook Inc (O:FB), facing growing skepticism about its digital currency project Libra , on Sunday said the initiative could use cryptocurrencies based on national currencies such as the dollar, instead of the synthetic one it initially proposed.

Facebook is apparently weighing some options for Libra , its ambitious but controversial cryptocurrency project, following mounting criticism from politicians and regulators. David Marcus, Facebook's blockchain boss, on Sunday reportedly said there could be alternative approaches to the digital coin, including using multiple cryptocurrencies based on national currencies such as the US dollar.

Facebook and its partners plan to launch Libra in 2020. Kay Nietfeld/picture alliance via Getty Images© Provided by CBS Interactive Inc. Facebook and its partners plan to launch Libra in 2020. Kay Nietfeld/picture alliance via Getty Images Facebook and its partners plan to launch Libra in 2020. © CNET

Facebook and its partners plan to launch Libra in 2020.

"We could do it differently," Marcus said during a banking seminar, according to Reuters. "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."

China says new digital currency will be similar to Facebook's Libra

China says new digital currency will be similar to Facebook's Libra China says new digital currency will be similar to Facebook's Libra

Libra , by contrast, is permissioned, meaning only a few trusted entities can keep track of the ledger. That makes it more like a digital currency rather than a cryptocurrency, says Lana Swartz, an assistant professor of media studies at the University of Virginia who’ s studied the bitcoin community extensively.

The head of Facebook Inc.’ s Libra project said that it could use cryptocurrencies based on national currencies like the dollar, rather than David Marcus, who oversees the Libra initiative for Facebook , told a banking seminar hosted by the Group of 30 in Washington that Facebook is open to looking at

Marcus said having multiple "stablecoins that represent national currencies" is one option for Libra that should be considered, but added that he wasn't suggesting this was the group's new preferred direction, according to Reuters. He reportedly said the main goal is creating a more efficient payments system.

Libra took a hit earlier this month as several of founding members of the Libra Association, the nonprofit overseeing the project, dropped out, including PayPal, eBay, Stripe, Visa and Mastercard. The departures come amid mounting criticism of the Libra project, which was unveiled in June and immediately met skepticism from politicians, regulators and nonprofits.

The Libra Association declined to comment. Facebook didn't immediately respond to a request for comment.

Congress will grill Mark Zuckerberg over Libra October 23rd .
Mark Zuckerberg will be under the spotlight of regulators once again when Facebook's CEO testifies before the Financial Services Committee this month. The congressional panel is set to grill him October 23rd over Facebook's planned cryptocurrency Libra and digital wallet Calibra. Zuckerberg will be the sole witness at the hearing, titled "An Examination of Facebook and Its Impact on the Financial Services and Housing Sectors." Until now,Zuckerberg will be the sole witness at the hearing, titled "An Examination of Facebook and Its Impact on the Financial Services and Housing Sectors." Until now, Facebook has opted to mainly send Calibra CEO David Marcus to discuss Libra with regulators.

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