Libra has not abandoned its original vision of launching a multi-currency backed stablecoin, according to the organization's Policy Director, Julien Le Goc. Speaking during the Global Digital Finance virtual summit on July 8, Julien noted that Libra's original vision, which draws inspiration from IMF special drawing fund, is still on course.
“We’ve not abandoned the multi-currency stablecoin, drawing its DNA from the [International Monetary Fund's] special drawing fund, which remains an important design feature.”
Initially, Libra had proposed to develop a stablecoin backed by over 80 fiat currencies in a bid to spread the volatility attributed to each fiat currency. In doing so, Libra hoped it would pioneer a more stable digital asset compared to current dollar-pegged tokens. This was, however, cut short after the U.S senate amongst other regulators moved to halt the Libra project.
While the launch date is still uncertain, the Facebook-led Libra Association has made some amendments between now and the time they first announced in 2019. For starters, the association released an updated whitepaper this year, changing its multi-currency proposed model. According to the news release, Libra will adopt single-backed stablecoins as opposed to the previous basket asset proposition.
Also, a new compliance regulatory framework is under development in collaboration with some central bankers. Julien emphasized that the Swiss-based association is looking to align its governance structure with national governments through private-public partnerships.
Libra's Fundamental Value on the Rise
Despite the uncertainty, Libra has been making fundamental progress in defining its structure and association membership. One of the notable recent milestones is Stuart's Levey appointment as the association's CEO. The former Chief Legal Officer at HSBC will lead Libra as it nears its sunrise phase in practicality. Other than this appointment, Libra's membership has grown, having added prominent stakeholders such as Temasek Holdings, Slow Ventures, and Paradigm.