Libra Association Makes a Host of New Changes to its Stablecoin Project to Address Regulatory Concerns
Libra Association has decided to deal with regulators and to remove all of the regulatory concerns related to its proposed stablecoin project. It has made an array of new changes to its project including its shift to multi-currency model.
Four Key changes
The Libra Association is going to make four new key changes into its Libra stablecoin project. First of all, according to a white paper that was released recently, the association is ‘offering single-currency stablecoins in addition to the multi-currency coin.’
According to the white paper, the Libra Association is going to add single-currency stablecoins in order to augment the Libra network. As the White paper reads:
“We are therefore augmenting the Libra network by including single-currency stablecoins in addition to ≋LBR, initially starting with some of the currencies in the proposed ≋LBR basket (e.g., LibraUSD or ≋USD, LibraEUR or ≋EUR, LibraGBP or ≋GBP, LibraSGD or ≋SGD).”
Other three changes include:
- Enhancing the safety of the Libra payment system with a robust compliance framework
- Forgoing the future transition to a permissionless system while maintaining its key economic properties
- Building strong protections into the design of the Libra Reserve
‘CBDCs could be linked with the Libra network’
The Libra Association also aims to integrate Central Bank Digital Currencies with the Libra network. If this integration happens, then it will help the association to decrease credit and custody risks. The Paper reads further:
“Moreover, our hope is that as central banks develop central bank digital currencies (CBDCs), these CBDCs could be directly integrated with the Libra network, removing the need for Libra Networks to manage the associated Reserves, thus reducing credit and custody risk. As an example, if a central bank develops a digital representation of the US dollar, euro, or British pound, the Association could replace the applicable single-currency stablecoin with the CBDC.”
Facebook’s Libra project has been facing regulatory issues since the project was established. Now, the Libra Association has decided to overcome these regulatory issues and is moving ahead to make such kind of new key changes into the network. This will change the overall look of the Libra project.
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