In keeping with regulatory protocols and guidelines, Facebook is making some critical adjustments to its highly controversial Libra project. The Verge says Calibra is experiencing a slight setback and will launch this Fall instead of its projected summer rollout. Facebook taunted regulators when it announced the potential mechanics of its innovative game-changing cryptocurrency Libra in development last summer.
Having anticipated it would attract some critical scrutiny, given how heavily regulated financial systems are today, it established the Libra Association. Initially, it intended to have a single cryptocurrency model added to the Calibra wallet. The initial proposition involved some 27 nonprofits and corporations that would’ve functioned as oversight to regulate its development.
PayPal, Stripe, Visa, and Mastercard were among supported payment processing vendors affiliated as partners. The project featured two components: its stable coin Libra token, and a core blockchain infrastructure, dedicated to verifying ownership and transactions. However, regulators insist the project threatens long-standing geopolitical and global economic systems.
When Facebook initially announced that the Libra stable coin is in development via its Calibra channel, it also proposed plans to branch out into lending. According to The Verge, the broad spectrum of services Facebook intends to offer also raises concerns about how it will disrupt traditional banking channels. What regulators also criticized is the lack of governance and traceability of the currency that would open avenues for criminal activities.
House lawmakers say the project could disrupt global economies and the U.S. financial market if it remains unregulated. What is more, Facebook is already an influential powerhouse that impacts the lives of billions worldwide. Lawmakers are taking the necessary precautions to mitigate global risks where viable. Facebook has been working assiduously to gain policymakers favor since Fall last year after regulators and Congress raised their concerns.
With the growing scrutiny surrounding the project, potential participating merchants Visa, PayPal, Stripe, and Mastercard have since retracted their endorsement. Now, the news out there is that Calibra will include existing world currencies plus the Libra stable coin whenever it launches. Instead of restricting the digital wallet to Facebook-only properties, it will also feature mainstream government-backed currencies.
Libra technology will allow smartphone users to buy, store, and trade the currency for products or services. Also, plans to integrate the Calibra money transfer suite into Facebook and Whatsapp messenger have not changed.
