Co-creator of Calibra David Marcus has posted an update on Facebook's Libra project today. He has published a new whitepaper for the project which includes several major changes.
The project will now focus on providing individual stablecoins for specific fiat currencies, such as USD, EUR and GBP, as well as its Libra Coin. Instead of being backed by a basket of fiat currencies, the Libra coin will now be backed by the stablecoins. Smart contracts will keep its price linked to the combination of stablecoins.
The pivot has been made following a strong backlash by regulators. As Decrypt reported, global regulators called for the project to be stopped in its tracks.
Excited with the progress of @Libra_ in the last 9 months. I keep on thinking about all the people and small businesses that could benefit from the Libra Network already being operational — especially now during these times of unprecedented hardship. 1/8
— David Marcus (@davidmarcus) April 16, 2020
The Libra network will now also have a comprehensive anti-money laundering and anti-terrorist protocols. It will be able to enforce sanctions over coins on the network, under requests from law enforcement. As a result, the coin will no longer be permissionless.
Marcus added that stronger protections will be included in the design to protect consumers, "even in the most adverse situations." He thanked the Libra Association for its work in the recent developments.
This story is breaking and will be updated.
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