Are we about to see some major changes coming to Libra?
Libra Is Taking On a Whole New Form
The words “changes coming” probably aren’t entirely accurate, as Libra has not been released to the public just yet, though up to this point, the currency has widely been suggested as a single asset rather than a string of combined ones making up a payment network. This is the form that Libra executives now say the project will take on.
Libra was originally going to be a stable currency supported by several forms of fiat such as the U.S. dollar and the euro. It was going to be a single unit of currency backed by others, though now it looks like executives want to change things up a bit.
This time, rather than issuing single Libra tokens, the name will apply to an entire payment network – governed by the Libra Association and operated through Facebook – that will allow customers to pay with the fiat that allegedly supports Libra’s present standing.
The news originally led some to believe that Facebook was no longer working on Libra at all, or that the currency was potentially becoming null and void. However, the company has issued a statement assuring “fans” and followers everywhere that this is not the case.
A spokesperson for the social media giant explained:
Reporting that Facebook does not intend to offer the Libra currency in its Calibra wallet is entirely incorrect. Facebook remains fully committed to the project.
The move is being viewed as a means of regaining trust from the public. Facebook has been embroiled in scandal ever since 2018. The Cambridge Analytica fiasco has likely left a hardcore stain on the social media company’s reputation, and it’s had a very hard time shedding its previous appearance as an enterprise that doesn’t respect its customers’ privacy.
Libra has been very controversial for this reason. Facebook had a hard time keeping the data of its customers safe and secure. Now, it’s suddenly asking that they all take part in a project that involves them providing certain financial information about themselves…
Give Us Reason to Trust You!
Many people aren’t standing for this, which could be why Facebook has suddenly decided to integrate several separate currencies that people trust and use regularly. Fiat currencies that are commonly used to garner everyday goods and services.
The move is also seen as a way of winning over regulators. Many lawmakers in the U.S. and Europe have scoffed at the idea of a private organization releasing its own currency. Money is often issued by governments, not by companies, and Facebook’s addition of the dollar, the euro and several other forms of fiat to its payment network could be a way of garnering more support and understanding from those who have sought to shut it out.