One of the most ambitious projects within cryptocurrency is definitely Facebook’s upcoming Libra token and Calibra wallet. Since the rumors of Facebook going into the cryptocurrency industry took hold, there has been speculation about how the token and it’s accompanying wallet will work, how Facebook will address all of the regulatory challenges and what such a massively used to would mean for the global economy. Since Facebook released its white paper and has begun pursuing regulatory approval for Libra, the topic of how cryptocurrency should be regulated has been on the lips of lawmakers around the globe.
Now, according to researchers at eToro, Facebook should be looking into supporting third-party stablecoins rather than launching their own token.
This information comes via reports from eToro’s blockchain research unit eToroX Labs which was published on November 28, 2019. The report states the while Libra does have the potential to disrupt the global financial system, Facebook will see more success if they change their strategy.
The token has seen some level of pushback from lawmakers around the globe and as such, some argue that should Facebook focus attention on the Calibra wallet and outsource the issue of the currency to third parties, they would have much more success and have a significant amount of pressure taken off them.
It has also been argued that Facebook should use its lobbying power to convince lawmakers to approve a framework that will allow third-parties to make use of the Libra network to issue digital tokens.
“The regulatory burden and associated compliance costs would befall those who use the ledger for their own gains, be it in the issuance of collateralized stablecoins, commodities or other financial instruments, effectively removing Libra from the money trail altogether,” said EToro CEO and founder Yoni Assia.
This is certainly an interesting suggestion as Facebook has the network and the mass userbase of over 2.7 billion people which they could leverage for a global payment system. However, many lawmakers’ concern seems to be that Libra would be used for criminal activity and could also threaten economic sovereignty which Facebook has repeatedly tried to address.