David Marcus, the co-creator of the Libra cryptocurrency project, has recently told a banking seminar the Libra Association could launch various fiat-pegged stablecoins instead of its proposed cryptocurrency.
According to Reuters, Marcus notes that “instead of having a synthetic unit” the Libra Association could launch “a series of stablecoins, a dollar stablecoin, a euro stablecoin, a sterling pound stable coin, etc.”
As covered, Facebook revealed last month that the basket of currencies backing its Libra would be composed by the U.S. dollar (50%), the euro (18%), the Japanese yen (14%), the British pound (11%) and the Singaporean dollar (7%). Its USD backing would also consist of short-term U.S. Treasury bonds.
During the banking seminar David Marcus stressed that the Libra Association’s preferred option weren’t fiat-pegged stablecoins, although its goal remains the same: to create a more efficient payments system.
Marcus added the Association is looking to launch its product in June of 2020, noting:
That’s still the goal. We’ve always said that we wouldn’t go forward unless we have addressed all legitimate concerns and get proper regulatory approval. So it’s not entirely up to up to us.
Late last month Facebook’s CEO Mark Zuckerberg dodged a question regarding the 2020 deadline, and instead noted the company is “really focused” on ensuring the Libra Association’s product launches well.
Several of the Association’s founding members, including PayPal, eBay, MasterCard, and Visa, have left it as it struggles with regulatory scrutiny and potential risks associated with money laundering and terrorism financing.
Despite the scrutiny French billionaire Xavier Niel, founder of the Iliad telecoms group, has publicly stated the project is “inevitable” and “constructive,” arguing regulators should embrace the new cryptocurrency as “fearing it will not prevent it from happening.”