Facebook open to currency-pegged candles for Libra project

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WASHINGTON (Reuters) – Facebook Inc (FB.O), in addressing a suspicion of its digital currency project, Libra said, on Sunday, that this initiative could use cryptograms based on national currencies such as the dollar, rather than the synthetic one that he originally suggested.

PHOTO FILE: View printed 3-D Facebook logo on US dollar banknotes in this picture, June 18, 2019. REUTERS / Dado Ruvic / Illustration / File Photo

David Marcus, who heads the Libra project for Facebook, said with a banking seminar that the main goal of the group was to create a more efficient payment system, but it was open to look at another approach to the currency sign that he would use.

“We could do it differently,” he said. “Instead of having a synthetic unit… we could have a set of stable coins, a dollar stability, a euro stable, a stable pound of sterling, etc.” said Marcus.

“We will certainly address this with many stable coins representing national currencies in a marked digital form,” he said. “That is one of the options that should be considered.”

Marcus said that he was not suggesting that the group's new option had stable coins with the currency.

“The mission is our task and there are a number of ways to do this,” said Marcus to Reuters after the panel, adding that the Libra had to show a lot of flexibility.

The Facebook-led project suffered a lot this month, as Mastercard Inc's main payment companies (MAN) and Visa Inc ( tV.N) the most recent partners to leave the group behind the project.

Other key members drawn out were Stripe, eBay Inc (EBAY.O) and Booking Holdings Inc. () tBKNG.O) and PayPal Holdings Inc (PYPL.O).

Global policymakers and regulators are also concerned that the establishment of a new synthetic global currency could put the global financial system in place, threaten user privacy, and facilitate money laundering.

A group of 20 finance leaders agreed on Friday to lay down strict regulations on cryptographs and said that such a stable should not be issued until different global risks were addressed.

Marcus told Reuters that Facebook was still trying to launch Libra in June 2020, but he acknowledged that he could lose that goal due to regulatory obstacles.

"We'll see. That is the target yet," said Marcus to Reuters when the planned launch of 2020 was delayed due to the recent departure of the major partners from the project.

“We have always said that I would only proceed if we have addressed all legitimate issues and obtained appropriate regulatory approval. So we have it ourselves, ”he said.

Reporting by Andrea Shalal; Edited by Lisa Shumaker

Our Standards:The principles of Thomson Reuters Trust.

. Foreign Exchange Currencies / Markets (t) European Union (t) Europe (t) Pictures (t) United States of America

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