Libra Association may consider launching a series of stablecoins

Libra Association may consider launching a series of stablecoins based on national currencies such as the dollar, euro, instead of the previously proposed synthetic one, a basket of fiat currencies which includes U.S. Dollar, Euro, Japanese Yen, British Pound, and Singapore dollar. Source: Reuters.

“[Libra association] is open to looking at alternative approaches for the currency token it would use,” says David Marcus, adding: “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”.

Speaking with Reuters, David Marcus, head of Libra project said that he was not suggesting fiat currency-peg stablecoins were the Libra Association’s new preferred option, but one of the options that the association may consider.

Recently, the guideline from G7 members that the stablecoins must not go ahead until the company proves it is safe and secure, has now raised more doubts about the project. Marcus believes that for the success of the initiative, it’s important to “demonstrate a lot of agility.”

When asked about the June 2020 launch, Marcus acknowledges missing the target due to regulatory hurdles, adding: “We’ve always said that we wouldn’t go forward unless we have addressed all legitimate concerns and get proper regulatory approval. So it’s not entirely up to us”.