Libra might launch series of Fiat Pegged Stablecoins

The Libra Association is open to the launch of several fiat- pegged stables, instead of the initially proposed token.

October 21, 2019, | AtoZ Markets As reported by Reuters on Monday, David Marcus, co-creator of Libra, told a banking seminar, “We could do it differently. Instead of having a synthetic unit. we could have a series of stablecoin, a euro stablecoin, a sterling pound stablecoin, etc.”

Marcus pointed out that fiat pegged stablecoins are not the new favorite option of the association. But the main objective remains to create a more efficient payment system. He added that the Libra project is still aiming for a launch in June 2020.

“It’s always the goal. We have constantly said that we would not move forward unless we have responded to all legitimate concerns and obtained appropriate regulatory approval. So, it’s not completely up to us, ” he told Reuters.

Libra has been facing increasing skepticism since its official announcement in mid-June. Last week, FATF President Xiangmin Liu said stablecoins, including Libra, could hinder efforts to prevent criminal activity.

Read More: Bermuda now accepts USDC stablecoin

Libra Fiat Pegged Stablecoins Global Challenges 

Marcus reportedly noted that the stables mentioned above were not the preferred option of the Libra Association for the project, but said he must remain agile. The governing body of the project has lost numerous vital members in recent weeks. This also includes payment and e-commerce companies like PayPal, Visa, eBay, Mastercard, and Stripe.

According to Steven Mnuchin (US Treasury Secretary), companies have left the Libra Association because the project was “not up to par” with US anti-money laundering standards. Indeed, Libra continues to face the pressure of global regulators, who express increased skepticism about the project and its possible effect on global financial stability.

G20 finance ministers and central bankers have recently raised concerns that global stablecoins will negatively affect the sovereignty of monetary policy, especially in developing countries. On October 18, German Federal Minister of Finance Olaf Scholz said that global regulators should prevent the Libra’s issuance outright.

Facebook CEO Mark Zuckerberg will testify about the project before the US House of Representatives Financial Services Committee on October 23.

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