Facebook’s Libra currency remains a very controversial project. Many regulators deem it overly ambitious and even claim it will not become a factor in their country.
To counter some of these concerns, the project’s whitepaper has received some interesting updates.
Crucial Changes for Libra Investors
It would appear that the Libra Association will no longer receive dividends automatically.
This is not the kind of news early investors want to hear.
All initial backers have pledged up to $20m each to become a cog in Facebook’s money machine.
Without dividends, those investments cannot be recuperated adequately.
Any interest generated by the reserve assets will be used to cover the costs of the system.
Additionally, these interests will allow for low transaction fees and ensure Libra can keep growing.
Although early investors won’t be too happy, this appears to be a smart decision.
If dividends remain in place, there is a conflict of interest for all Libra Association members.
Whether or not the general public will see it that way, is a different matter altogether.
It is unlikely that this move will appease most regulators either, albeit it is a step in the right direction.
For now, there are still a lot of questions surrounding Facebook’s Libra.
This project is far from production-ready, for rather obvious reasons.