The Libra Association has announced new changes to its proposed stablecoin project, most notably a move to work with central banks in developing digital currencies.
The Libra stablecoin project will see a host of single-currency stablecoins developed alongside a multi-currency one, so we should see the emergence of Libra currency linked to US dollars, euros, pounds sterling and more.
A new white paper also indicates that Libra could serve as a platform for central bank digital currencies, and banks launch these initiatives.
The Libra Association’s Michael Engle, explains that the goal of the Libra project has always been to enable a simple global payment system and financial infrastructure that empowers billions of people.
“In the months since our initial June 2019 announcement, we’ve worked closely with regulators, central bankers, elected officials, and various stakeholders to shape an innovative approach to using blockchain technology to support a regulated, licensed payment system.”
The updated white paper outlines the work done on the design of the Libra payment system since June 2019.
“We have made changes to our initial approach, many of which depart from the approaches taken by other blockchain projects,” Engle says. “Our goal was never to emulate other systems, but rather to leverage the innovative approach of using distributed governance and distributed technology to create an open and trustworthy system.
“By undertaking the difficult work of enhancing traditional financial systems to become programmable, interoperable, and upgradeable, we hope to allow others to leverage our efforts to build not only innovative but also safe and compliant financial applications that can serve everyone.
“We appreciate the discussions with policymakers around the world who have helped us understand key concerns so that we can integrate actionable improvements into the Libra payment system’s design and into a phased rollout plan.”
Changes that will most directly impact developers include:
* Marrying blockchain technology with accepted regulatory frameworks;
* Offering single-currency stablecoins in addition to the multi-currency coin; and
* Phasing the rollout of the Libra network.
The White paper from the Libra Association can be seen here.