Libra Head Now Considering A ‘Series Of Fiat-Backed’ Stablecoins; Binance CEO Says, It “Won’t Work”

  • Instead of one synthetic unit, Libra creator David Marcus says, it could have many
  • Binance CEO Changpeng Zhao says it’s like the exchange’s “Venus” model but “won’t work”

Despite the regulatory pressure and seven of the Libra Association members leaving Facebook’s cryptocurrency project, the social media giant is undeterred and could work on cryptocurrencies based on national currencies like the dollar instead of just the synthetic one, initially proposed.

Recently at a banking seminar hosted by Group 30 in Washington, David Marcus, co-creator of Libra said the company is open to looking at alternative approaches for its fiat-pegged stablecoin.

“We could do it differently,” Marcus said. “Instead of having a synthetic unit…we could have a series of stablecoins: a dollar stablecoin, a euro stablecoin, a sterling pound stablecoin, etc.”

Currency-backed stablecoins, he said aren’t Libra’s preferred option.

“We’ve always said that we wouldn’t go forward unless we have addressed all legitimate concerns and get proper regulatory approval,” Marcus told Reuters. “So it’s not entirely up to us.”

The project, he said is still aiming for a June 2020 launch.

This “Won’t Work”: ‘CZ’ Binance CEO

Facebook has been facing growing skepticism and regulatory pressure about its cryptocurrency project.

Last week, during a panel at a conference hosted by the Institute of International Finance in Washington, JPMorgan Chase & Co. CEO Jamie Dimon said, “It was a neat idea that’ll never happen.”

Facebook’s idea, Dimon said wasn’t particularly unique and pointed to his own bank’s stablecoin, JPM Coin.

As such, Facebook has taken to this new route. But Changpeng Zhao, the CEO of the leading cryptocurrency exchange Binance, believes this won’t work either. CZ said:

“Baskets won't work for many reasons. Facebook could 1, accept the top 10 cryptos to get users and regulators warmed up, then slide in Libra. Or 2, geofence opposing regions, including US, to get started. Or 3, say “Libra doesn't care” and push on.”

“Venus model. Lol,” CZ mocked Facebook’s new approach. Venus is Binance’s open blockchain project, announced in August this year, that will develop regional stablecoins pegged to fiat currencies.

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