Libra Hasn't Abandoned Multi-Currency Stablecoin: Policy Director
The Libra Association's head of policy said ongoing dialogues with central bankers had not dented their original ambition.
Jul 8, 2020 at 4:22 p.m. UTCUpdated Sep 14, 2021 at 9:28 a.m. UTC
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A Libra executive has confirmed the project has not lost sight of its original ambition to launch a multi-currency stablecoin.
- Speaking at the Global Digital Finance virtual summit Wednesday, Libra Director of Policy Julien Le Goc said the Facebook-backed entity was still looking at its original plan: "We’ve not abandoned the multi-currency stablecoin, drawing its DNA from the [International Monetary Fund's] special drawing fund, which remains an important design feature."
- Libra's original vision in 2019 had been to release one multi-currency stablecoin backed by a basket of up to 30 fiat currencies.
- This was hit with resistance from government officials who were concerned about a private entity challenging their monetary sovereignty.
- In an updated white paper earlier this year, Libra appeared to scale back its ambitions and said it would first create a series of single-currency stablecoins instead.
- A multi-currency asset was still on the cards, the white paper read, but it would be backed by single-asset stablecoins, with the weighting reviewed and changed over time.
- Le Goc confirmed Libra still wants to become a borderless payment method for the world's unbanked.
- He said the Swiss-based association was also creating a new regulatory compliance framework in an "ongoing dialogue" with central bankers.
- He added that Libra was also exploring ways it could make its governance structure closer to a public-private partnership with national governments.
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