The future of Facebook’s Libra project has been called into question in the last few weeks as the Facebook Libra team has continued to push the token towards world leaders trying to gain regulatory approval, only to meet roadblocks at many turns. This includes concern about whether or not the token could be used for illegal activities and also what it will mean for local economies. On top of these challenges, seven out of the initial 28 founding members of the Libra Association have pulled out of the project this just once again brings up suspicion about whether or not the project can move forward.
According to the report from October 20, 2019, David Marcus, the head of the Libra project and the Calibra wallet, has stated that the project could make use of fiat-backed stablecoins instead of strictly the Facebook-issued token they had planned for.
This statement was made at the banking seminar in which Marcus stated that the essence of Libra was to create alternative payment methods for consumers and that this could potentially include all the stable coins.
“We could do it differently,” he said. “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 […] We could definitely approach this with having a multitude of stablecoins that represent national currencies in a tokenized digital form […] That is one of the options that should be considered,” Marcus said.
Previously, had been stated that the fiat currencies were proposed for the Libra project were the US dollar, British pound, Euro and so on.
Marcus conceded that the use of these stablecoins were not the preferred initial method for Libra but that the project must be agile and remain flexible if it is to survive. As stated previously, several members of the Libra Association have exited and according to the United States Treasury Secretary Steven Mnuchin, this is because the project did not meet up tp money laundering standards. Others speculate that they left due to potential regulatory pushback due to their association with Libra.