Facebook will not release its cryptocurrency
Facebook has abandoned its current ideas to create a single digital currency within the Libra project. Instead, a few stablecoins will be issued, the rate of which will be fixed to different national currencies, such as USD, EUR, GBP and Singapore dollar, reports Coindesk.
"Each single-currency stablecoin will be supported by a Reserve of cash or cash-equivalents and very short-term government securities denominated in that currency and issued by the home country of that currency," it is said n Libra blog.
Libra Association named the fears of financial regulators that Facebook cryptocurrency may have a negative impact on monetary sovereignty and monetary policy of states as the reason for changing plans. However, the startup still intends to release its token in 2020.
Libra noted that the issue of a single digital currency is possible in the future. However, it will be backed up not by fiat currencies and other assets, as previously assumed, but by the developed stablecoins, the Association said