Facebook’s Libra Won’t be Permissionless and Backed by a Basket of Reserve Stablecoins


Given Facebook’s desire to begin creating its Libra digital currency, many expected a streamlined effort. That situation may now come to change, as some core changes have been announced earlier this week.

There are still a lot of questions regarding Facebook’s Libra project.

This is not the Libra you Seek

Primarily regulators are very concerned over what is happening.

It now seems that the project has received a big update, as well as a brand new whitepaper.

Initially, the Libra will provide individual stablecoins for its reserve basket of fiat currencies.

That includes separate currencies for the Euro, US Dollar, and Pound Sterling.

All of these currencies operate independently of the native Libra Coin, which will still be issued as originally planned.

That also means the new stablecoins will be used to give the Libra Coin itself a stable value.

All of these changes are made to appease regulators and financial institutions.

Other changes include the introduction of anti-money laundering and anti-terrorist solutions.

Those are crucial when engaging in financial activity in any part of the world.

Anyone who hoped for Facebook’s digital currency to be completely permissionless will have to look for other solutions, however.

It is possible that other changes will be made well ahead of the Libra effectively coming to market.

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