Willingness has been shown by the social media giant to reverse its course on the plans it has to tie their digital currency projects to synthetic currencies which are tied to a global currency basket.
It has been reported that the head of the Libra project for Facebook, David Marcus had told a group of bankers about his company’s main goal which was to create a statement of payments which was better and was open to trying alternative approaches to the structure which had been planned originally for the project.
Facebook along with its partners had intentions of creating its cryptocurrency and pegging it to a national currency basket whose holdings are going to be set by the Libra Association.
The national banks had considered the plan as a part of a dangerous end-run around regulatory authority that they have and have held up the project until they’ve assumed tighter control over the operations of the cryptocurrency architected by Facebook and the technology of payments are going to operate.
This scrutiny from the regulators has proved too much for a few of the earliest and largest partners of Facebook in the Libra Association, the members of who would be determining how this cryptocurrency is going to operate.
In the previous month, Libra Association’s seven founding members had pulled out including, Mastercard, PayPal, Ebay, Visa and Stripe. They represented a large chunk of the commercial heft and strategic value of the planned association with Mastercard, Visa, Ebay and Stripe standing in for many payment processors and touchpoints for merchants that this new cryptocurrency is going to need had been to scale dramatically to the size which Facebook had wanted right out of the door.