Facebook is willing to turn its course around its plans to link the digital currency project to a synthetic currency tied to a basket of global currencies.
Reuters reports that Facebook's head of the Libra project, David Marcus, told a group of bankers that the company's main goal was to create a better payment system and was open to alternative approaches to the original structure of the project.
Facebook and its partners intended to create their cryptocurrency by linking it to a basket of national currencies whose ownership stake would be set by the Libra Association.
National banks considered the plan as part of a dangerous end-run around their regulatory authority and have held up the project until they could take tighter control over how the Facebook-archived cryptocurrency and payment technology would work.
The control from regulators proved too much for some of Facebook's largest, and earliest, partners in Weighted As, whose members were to decide how cryptocurrency would work.
Over the past month, seven of Libra Association's founding members have dropped, including: PayPal, Mastercard, Visa, Ebay and Stripe. The seven represented a large part of the strategic value and commercial booklet of the planned association, with Stripe, Mastercard, Visa and Ebay accounting for a large number of payment processors and merchant touch points that the new cryptocurrency would need to dramatically scale to size. that Facebook wanted right out of the gate.
Now, in another strategic reversal, Marcus admits the synthetic currency in favor of stackcoins tied to the local currency in each market that Libra would operate.
"We could do it differently," quoted the Reuters Libra Association chief. "Instead of having a synthetic unit … we could have a series of stablecoins, a dollar stablecoin, a euro stablecoin, a sterling pound stable coin, etc."
All this is happening on the basis of Facebook's stated June 2020 launch date for Libra cryptocurrency. Marcus told Reuters that the June launch was still the goal, but that the union would not move forward unless it had raised concerns from regulators and obtained the proper approvals.
These approvals are becoming more difficult to come by as regulators who monitored global monetary policy also put a more skeptical eye on stacking coins.
Reuters reported that G-20 Financial Supervisors wrote in a statement that money laundering, illegal finance and consumer protection must be evaluated before any stablecoin projects can "start operations."