After facing months of severe backlash from regulators and politicians, Facebook is altering its plans for its own digital currency according to the report published by The Information. Facebook is considering a system that’ll offer digital versions of government-backed currencies, including the Euro and the dollar, in addition to the originally proposed Libra token.
“The Libra Association has not altered its goal of building a regulatory compliant global payment network, and the basic design principles that support that goal have not been changed nor has the potential for this network to foster future innovation,” says Dante Disparte, head of Policy and Communications at the Libra Association.
Facebook might delay the launch of Calibra, a wallet app “built on blockchain technology,” which will be used to showcase Libra technology, and will allow users to store the cryptocurrency “freely, securely, and affordably.”
At launch, the wallet may only be available for those conventional currencies that it officially supports, and will eventually expand to support other government-backed currencies worldwide.
Facebook being a member of the Libra Association, made up of 21 founding members, has partnered with Spotify, Uber, and many other high-profile members that are supervising the Libra crypto.
The Regulatory Backlash Against Libra
It was in June last year when Facebook announced that it would launch Libra, with Libra association, for making the payments cheaper and easier. Libra currency units will be created on-demand and will be retired as soon as they get redeemed for government-backed conventional currencies.
Libra contrasts with existing cryptocurrencies as it isn’t decentralized, being a permissioned-blockchain cryptocurrency, putting its complete reliance on the Libra Association’s credibility and trust, just like an actual central bank, this becoming one of the reasons for the regulatory backlash.
The US regulatory has serious concerns about how Libra would deal with money laundering, consumer protection, and financial stability. Not to mention previous episodes of handling of people’s information by Facebook not meeting regulation standards puts Libra’s personal data management practices into question.
How Cryptocurrency is Transforming Online Transactions
Cryptocurrency and blockchain technology is radically transforming major industries as we speak. Decentralized permissionless-blockchain cryptocurrencies provide a trustworthy mode of payment that prevents frauds and also avoids various hurdles that the conventional modes of payments have, like currency fluctuations and transaction fees. This has led to many charities, entertainment industries, and retailers accepting payments in cryptocurrencies.
Online gaming was often seen as a perfect use-case for cryptocurrencies, but the adoption is yet to materialize fully. In the face of tight competition in online gaming, the ease of access to the digital crypto is the perfect incorporation the online gaming industry needs. Its immunity to socio-political issues and the gradual acceptance of the currency by the large user base has influenced many companies to slowly adopt cryptocurrencies.
Joker as a slot machine game that doesn’t accept crypto deposits as of now will eventually transition into accepting crypto payments in the near future, though a lot of it depends upon the kind of blockchain technology that’s being used by the crypto and will decide whether the currency will be embraced by upcoming major industries or not.
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