Facebook is reportedly rethinking its ambitious plans for its own digital currency; following months of severe regulatory pressure and political push-back. Instead Facebook is planning to launch its own Calibra digital wallet; with digital versions of established currencies, including the dollar and the Euro and Libra as one of the supported currency.
The Libra Association will continue its project. “Reporting that Facebook does not intend to offer the Libra currency in its Calibra wallet is entirely incorrect. Facebook remains fully committed to the project,” a Facebook spokesperson said in a statement given to The Verge.
Facebook will no longer promote its own digital currency and instead use existing ones
What is Facebook Libra cryptocurrency?
Libra is the cryptocurrency that will be like bitcoin in some terms but will be pegged to various aspects hence making it more stable. The growth of bitcoin has been tremendous along the years, and an addition to the cryptocurrencies available could change the world.
Trump hits out at Libra and bitcoin
Libra was dragged into controversy following the series of tweets from Donald Trump. Trump said that he isn’t a fan of Bitcoin and any other form of cryptocurrency since their values are highly unstable and based on thin air. The second tweet that Trump made points out to Libra, saying that Facebook’s ‘virtual currency’ will have very less dependability. He said that if companies like Facebook want to function as a bank, they need to look for a Banking charter and abide by all banking regulations just like all the banks do.
Why Facebook is rolling out of Libra?
As it was getting political push backs from beginning, it suffered new blows as the departures of key partners became an exodus. Stripe, Mastercard, Visa and eBay said they were all pulling out of Libra, a week after PayPal became the first company to drop out.
Bitcoin vs Libra:
The most notable difference seen is in Bitcoin’s decentralization. No entity controls Bitcoin, whereas the Libra Association will control Libra. Likewise, Libra is tied to real-life assets and national currencies. So, the value will depend on the governmental control and effects of currencies fluctuation.
On the other hand, Bitcoin isn’t pegged to any of these assets making its value questionable. Similarly, Libra C will initially operate on a permissioned blockchain, that means the miners will need approval before mining. But, Bitcoin’s blockchain doesn’t require permission, and thus the miners have a free choice of mining.
Libra was scheduled to launch within the first six months of 2020. Facebook’s Libra could die an unceremonious death before, or maybe soon after, its launch. For now Facebook’d rather stick to Calibra project and slow down the Libra project.