Facebook’s Libra Revamped in Response to Regulatory Requirements

Facebook's Libra Revamped in Response to Regulatory Requirements

Libra Foundation has recently published version 2.0 of the initial whitepaper, unveiling its objective of rendering global financial infrastructure accessible.

Regulators initially investigated the initiative, fearing the effect an extra-territorial currency structure on domestic monetary policy.

Libra takes into account regulatory challenges

The paper included some changes such as stablecoins and regulated nodes (VASPS), taking into consideration the regulatory challenges.

The main drawback of these improvements is that the network is less open and less decentralized. Thus, the Bitcoin community may dismiss this as another centralized project, the Daily Hodl website reported.  

These changes represent major progress in enabling the project to potentially launch. Libra is taking a more regulated approach, as discussed earlier by eToro in its position paper on the issue.

The position paper reads:

“We maintain the position that innovation in the financial services is key in achieving structural reform with lasting positive implications for the global economy. With prudent and accommodating regulatory oversight, advancements innovation is key in combating market fragmentation and maintaining resilience and liquidity in the global financial markets.”

“It is our belief that observing the recommendations would significantly improve the likelihood that the Libra project will be able to execute on their stated vision of financial inclusion” eToro added.

It recommended building a governance approach to enable the project to move ahead in collaboration with existing institutions and procedures.

Ueli Maurer, Switzerland’s President, earlier said Facebook’s cryptocurrency Libra has failed and should be amended before sending to regulators for approval.

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Rabea Maguid 551 Articles
Rabea Maguid is a journalist completely obsessed with crypto industry. He holds B.A. from Al-Azhar University, and has a background in journalism and economics. Rabea Maguid likes to think about the future in a positive way, and sees blockchain as a potential driver of deep societal change.