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Facebook Rethinks Libra Plans, Extending This Project

The G7 authorities – Great Britain, Germany, Italy, Canada, the USA, France and Japan – negatively relate to the Facebook’s intention to launch its own cryptocurrency. That’s why the social media giant decided so far to consider the possibility of creating its own electronic payment system.

libra project seen as payment system firstPhoto: Flickr

It would be used in the system core the same Libra and that the new project concept would be announced in the nearest future by Libra consortium, which consists of  more than twenty companies and organizations, including Facebook one of them.

Well, so far, Facebook doesn’t abandon the plan to issue its own cryptocurrency, on the contrary, such a step is nothing but a project extension.

On the other hand, experts note that if the Libra project would turn out into the creation of a payment system, rather than a global cryptocurrency, then ordinary U.S. citizens will not tell the difference comparing with existing system like PayPal, for example.

Meantime, the Bitcoin rates rose by 0.27 percent, to $8,772 at 1421 GMT.

  • Bitcoin Cash eased by 1.75 percent, to $324,80;

  • Ethereum added 0.73 percent, to $225,33;

  • Ripple slipped by 0.04 percent, to $0,2343;

  • Litecoin lost 0.35 percent, to $60,57.

Recall, Facebook announced for the first time in 2019 its plan to launch its cryptocurrency in the 2020. The company is sure, that digital currency transactions will be as simple as sending a text message to the phone. The new currency functioning will be based on blockchain technology – a decentralized database, in which information storage devices are not connected to a common server.

Even the U.S. Treasury Secretary responded to Facebook’s intentions, commenting that the U.S. administration “expresses very serious concern that Libra could be used by money launderers and terrorists.” Meantime, the U.S. President blames the “low stability and reliability” of cryptocurrencies, whereas G7 finance ministers warned that Libra could negatively affect the whole international monetary system functioning.

One should remind, that Visa, eBay, PayPal and Mastercard got out the Facebook’s project of Libra launch.

Mastercard refused to participate in the Facebook cryptocurrency development, not only because of problems with financial regulators, but also because of concerns about compliance with the previously announced business model. According to him, key members of the Libra Association could not guarantee that its actions would correspond to a legitimate regarding money laundering, the “Know Your Client” (KYC) policy and respect for data confidentiality.