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David Marcus: Libra Could Use Currency-Pegged Stablecoins
October 21  |  2 min read

Facebook’s Libra Considers Fiat-Pegged Stablecoins Instead of Current Basket

The COIN360 Editorial Team

David Marcus, co-founder and head of Libra, claimed that the project could use a series of stablecoins pegged to national currencies including the dollar, pound, euro and others. This approach could replace the previous plan of backing Libra with a basket of fiat currencies that included the U.S. dollar, euro, yen, British pound and Singapore dollar. However, Marcus only raised the new fiat model as a possibility without committing to it as Libra’s new preferred option.

According to remarks Marcus made at a banking seminar on Sunday, Facebook’s Libra is aimed at creating a more efficient payment system. “We could definitely approach this with having a multitude of stablecoins that represent national currencies in a tokenized digital form,” he added.

A new approach may be considered necessary due to growing regulatory pressure on Facebook’s Libra coin. Marcus didn’t explain the reasons behind the suggestion but he did clarify that the new model with multiple stablecoins backed by different national currencies is not the preferred option.

Answering a question about the recent departures of major Libra partners, David Marcus claimed that a Libra launch in June 2020 is “still a goal.” However, he noted that Libra “wouldn’t go forward unless we have addressed all legitimate concerns and get proper regulatory approval,” and the deadline might be extended due to regulatory issues.

As previously reported by COIN360, a number of companies (Visa, Mastercard, PayPal, eBay, Booking, Stripe) have left the Libra Association. Despite this setback, the Libra project claimed that it is ready to move forward and formed a board with interim rules for governance at the inaugural meeting last week.