Regulatory issues were one of the main reasons for preventing the adoption of cryptocurrencies. The topic was of such enormous significance that even tech honchos like Facebook couldn’t get through it.
According to recent reports, the Mark Zuckerberg company was planning to ditch its original plans for its cryptocurrency Libra and move forward with a fiat tie-up.
Facebook stated that the cloud of regulatory uncertainty was the main reason for the change and that the company will come up with innovative ways to launch a beneficial cryptocurrency. The social media giant confirmed that the Libra Association will continue its work which will also include Libra. After a long battle with the regulators, Facebook will now provide its users with digital versions of government-backed cryptocurrencies.
The new plans will include Facebook selling tokens that are linked to the US dollar and the euro. Sources close to the developments have also said the launch of the wallet would allow users to make purchases and receive money. People expecting a launch soon will have to wait some more as the company has revealed it will take a few weeks at most.
According to The Information, Facebook no longer plans to create the Libra token but rather will focus on working with governments. Facebook further revealed that it will be delaying the launch of its cryptocurrency wallet, Calibra which was touted to be the next big thing in the industry. Calibra is now expected to support multiple currencies with Libra being just one of the tokens in its fold.
Facebook officials have been on a rampant cause to inform users that it still planned to go ahead with Libra and Calibra. It also put down rumors that the company was not planning to offer Libra on its native wallet. Calibra’s launch was expected to take place in May or June but has now been pushed to October. The launch of October will also see Calibra being restricted to certain regions of the world.
Calibra is expected to be launched in only those regions where its currency is supported by the application. Facebook was ready to take the hit caused by the delay because it doesn’t want any more obstacles on the path to launch. The Libra project was first announced in June 2019 and since then it has been caught up in legal discussions. The rocky waters also affected the member pool of the Libra Association and their affiliation with Facebook.
After a lukewarm response from Facebook regarding regulatory questions, Mastercard, PayPal, Visa, and Stripe all exited from the Libra Association. The companies were part of a 27 organization roster that was tasked with overseeing Libra’s developments. The latest announcement is another shakeup in Libra’s path but for the first time, it may be something that the regulators like.
