Will Facebook save Libra?

After a long silence, there was renewed news of Libra, but not good news. Beijing time on the 4th, a number ofmedia reported that Facebook may reduce the size of Libra’s distribution. Compared with the ambitions of the original white paper, Libra is clearly suffering from a frost, and over the past six months, pressure on scrutiny has forced Libra to rethink its original “global single currency” plan.

While Libra has yet to release the latest developments, it is certain that Facebook will be less difficult on Libra’s issue.

Will Facebook save Libra?

Escape the high-pressure supervision, may as well try “curve salvation.” Facebook will scale back its plans for Libra’s global digital currency and will not use Libra in its services for the time being under intense scrutiny by regulators, Reuters reported, citing technology media, The Information. The report said Facebook would only provide digital versions of government-backed currencies, including the dollar and the euro. This means that Facebook may no longer have Libra stable currency at the heart of its digital payment strategy, but will include more legal-currency-backed digital currencies in its support.

There may not be much doubt about this claim, after all, since Facebook announced its plan to stabilize the currency, Libra has not only failed to get a regulatory pass, but has remained under regulatory pressure, which led to the subsequent break-up of Libra’s “union”. In addition, The Information reported that Facebook’s Calibra digital wallet will also be delayed until October, and that Calibra will support multiple currencies under current plans, and Libra is just one of them.

Dante Disparte, Libra’s head of policy and communications, did not respond positively to the veracity of the rumors, the progress of the Libra project and the timing of its launch, but he told the Beijing Business Daily that Libra The Association has not changed its goal of establishing a global payment network that complies with regulations, and the basic design principles that support that goal have not changed.

Libra’s story begins last June. At the time, Facebook released a white paper on the cryptocurrency Libra project, which caused a thousand waves. According to Facebook, Libra would have been launched in June if all went well.

Libra had long anticipated the risks, so she created a 27-member nonprofit called The Libra Association. But as the storm spread, many members backed down, and since October, Libra’s founding members eBay, PayPal, Visa, MasterCard, Stripe and Mercado Pago have announced their retirements from the Libra Society.

From being accused to “over-the-house” hearings, Libra has been under the pressure of regulation, with issues such as privacy, money laundering, consumer protection and financial stability all posted to Libra. Earlier, Federal Reserve Chairman Colin Powell had said the Libra project could not progress until Facebook could clearly answer regulators’ questions and make them happy. But last month, Mr Powell said Libra had ignited the “fire of the stars” of the digital currency.

It’s still the time to go around. In July last year, Marcus, the head of the Libra program known as the “father of Libra,” testified before congress that Libra Association would work with the Federal Reserve and other central banks to ensure that Libra did not compete with sovereign currencies or interfere in monetary policy. Since then, Facebook CEO Mark Zuckerberg has stressed at the hearing, but the regulatory issue does not introduce Libra. But now the situation is that the resistance wave after wave, the hearing also on, attitude also showed, Libra is still not let go. As for how Libra will break through in the future, or what Facebook will do, it’s only a step by step.