Libra 2.0 Bears Little Resemblance to Initial ‘Facebook Coin’ Plan

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In Brief
  • The Libra Association has made sweeping changes to the project since the first white paper in 2019.

  • Libra has opted for multiple fiat currency-backed stablecoins rather than a single LBR token supported by a basket of major currencies.

  • Libra continues to adapt its project to suit the requirements of regulators across the world.

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Amid a raft of changes, Libra is evolving to become a significantly different project than what was originally announced in mid-2019.

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Tweeting on Saturday, crypto VC fund IOSG Ventures highlighted the differences between the contents of the updated Libra white paper and the June 2019 iteration. The first major alteration comes in the form of the project’s token mechanism.

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Upon its initial white paper release, the Libra Association declared that the Libra token (LBR) would be a stablecoin backed by a basket of fiat currencies. Regulators across the world faulted this plan citing monetary control risks.

Back in April, Libra released an updated white paper containing four major changes, one of which was the new token mechanism. Instead of one stablecoin backed by a basket of fiat, the project now plans to run a multi-fiat currency-backed stablecoin system. Thus, upon launch, there could potentially be tokens like LibraUSD, LibraGBP, and LibraEUR among others.

Libra’s multi-stablecoin system will also be under the purview of central banks, the International Monetary Fund (IMF), and the Swiss Financial Market Supervisory Authority (FINMA).

The other three major changes focused on regulatory compliance following the storm of opposition that met its initial white paper release. The Association has since committed to working with regulators to ensure adherence to money laundering and terrorism financing laws.

In late May, Facebook rebranded its planned Calibra digital currency wallet, renaming it ‘Novi’ in a move likely orchestrated to create a distinction between the social media giant and the Libra project.

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Osato is a reporter at BeInCrypto and Bitcoin believer based in Lagos, Nigeria. When not immersed in the daily happenings in the crypto scene, he can be found watching historical documentaries or trying to beat his Scrabble high score.

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