Facebook has stated that it would revamp the unveiling plans for its digital currency despite regulatory scrutiny.
The company said it would also offer digital versions of government-backed currencies including the dollar and euro, alongside its proposed Libra currency when its digital wallet is launched.
Prior to this change, the Libra currency was to be used as a decentralized global form of payment that is as stable as the dollar. It was also said to be used to buy almost anything and could support an entire range of financial products from banking to loans and credit.
Nairametrics had previously reported that Facebook users would be able to send money to each other and pay for goods and services through Facebook’s linked apps such as Messenger and Whatsapp.
According to the Facebook spokesperson, who spoke to Reuters, the company had started working on digital versions of government-backed currencies, which he said would go along with the proposed Libra token. However, there was no reason given to why Facebook was suddenly planning to include government-backed currencies.
Nevertheless, this swift change of plans can be the company’s way of trying to get the regulatory approval needed for Libra to operate following the outbursts and criticisms from governments since the disclosure. Several governments have portrayed it as a dangerous currency not to be used for trade.
The criticism is believed to be overwhelming for some of the Association members of Libra which caused them to leave as Nairametrics reported a number of times. Also, fear of government clampdown on their other businesses is compelling some of them to rethink their association with Libra, factoring the cost of a face-off with the government.
What you should know: Facebook had announced its plan to launch Libra in partnership with other members of the Libra association in June last year. Current members of Facebook’s Libra Association include Shopify, PayU, Farfetch, Lyft, Spotify, Uber, Illiad SA, Anchorage, Bison Trails, Coinbase, Xapo, Andreessen Horowitz, Union Square Ventures, Breakthrough Initiatives, Ribbit Capital, Thrive Capital, Creative Destruction Lab, Kiva and Mercy Corps, and Women’s World Banking.