SAN FRANCISCO – Facebook Inc. ( NASDAQ: FB) and its partners are considering a redesign of the Libra cryptocurrency system to allow for digital versions of established currencies such as the dollar and the Euro – according to Bloomberg and tech site The Information. The change marks a clear attempt by the firm at adapting its currency platform to the stiff pressure it has faced from regulators since its inception.
The Libra Association once boasted many high profile members such as Paypal, Visa, Mastercard, Stripe, Mercado Pago and eBay. These companies have since withdrawn support due to criticism by authorities, which still leaves 21 companies in the partnership, including big names like Lyft, Spotify and Shopify.
When Facebook unveiled Libra, it intended to create a single global digital currency. Anyone, especially the 1.7 billion people who have no bank account, could send money anywhere in the world at little cost, as easily as sending a text.
Dante Disparte, head of Policy and Communications at the Libra Association said: “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.”
Several government leaders and research groups, such as the one set up by G7, have criticised Libra and warn that cryptocurrencies pose a risk to the global financial system.