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How Facebook Cryptocurrency Libra 2.0 Faced Uncertainty?

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How Facebook Cryptocurrency Libra 2.0 Faced Regulatory Uncertainty
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Short Insights

  • Facebook’s Libra project appears as an abject failure after a year of its announcement has passed.
  • Facebook’s vision of a global currency has been facing excessive backlash and also appears as a poor framework.
  • Libra 2.0 has shifted its focus. It is now on the provision of a way for people to buy and sell utilizing different kinds of coins.

Facebook first unveiled its plans for Libra, a global cryptocurrency in June 2019. Its vision was to allow everybody to trade goods and services without needing a credit card or a bank account. In this context, everyone included regardless of where they located in the world.

However, Facebook’s Libra project appears as an abject failure after a year of its announcement has passed. The New York Times has reported that Facebook’s Cryptocurrency Libra Project has Scaled Back. Its updated white paper makes its unified global currency’s vision seem similar to the unreleased PayPal clone.

Facebook’s Vision of Libra Falls Apart

Facebook’s vision of a global currency has been facing excessive backlash and also appears as a poor framework. Experts have referred to it as Facebook’s downfall. French ministers, too, have turned down facebook’s Libra. The French Minister of the Economy and Finance had warned against Facebook’s controversial cryptocurrency Libra. He said that it would not be permitted in France in case libra launched as per the planned date.

Furthermore, U.S. President Donald Trump also tweeted that he was not a fan. He lashed at Facebook’s global currency Libra that it will have deficient rank or reliability. U.S. president also tweeted that if Facebook and other companies look forward to being a bank, they should seek a Banking Charter. And also, they become submissive to all the regulations of banking, as other national and international banks have been.

PayPal, Visa, MasterCard, and eBay, who were the high-profile backers, announced their withdrawal from the Libra Association. They had initially invested in the project but later started to abandon it. Libra Association is the body meant for the overseeing of Libra’s creation and rollout.

Mark Zuckerberg,  Facebook CEO, got roasted in front of Congress in October for his evident attempt to bypass the regulatory approvals.

Libra 2.0: New Innovation

Libra 2.0 has shifted its focus. It is now on the provision of a way for people to buy and sell utilizing different kinds of coins. These coins are entitled to local currency. This shift of focus is to compensate for the need not to build up a completely new financial system. A unified coin that is backed by multiple currencies is for the allowance of transfers linking the coins.

Dante Disparte,  Libra Association’s vice chairman and head of public policy, has spoken to times regarding his presumption. He stated that he suspects this round would be received better depending on how the story is expressed and on how accurately it is said.

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