Libra Hasn't Abandoned Multi-Currency Stablecoin: Policy Director

The Libra Association's head of policy said ongoing dialogues with central bankers had not dented their original ambition.

AccessTimeIconJul 8, 2020 at 4:22 p.m. UTC
Updated Sep 14, 2021 at 9:28 a.m. UTC

A Libra executive has confirmed the project has not lost sight of its original ambition to launch a multi-currency stablecoin.

  • Speaking at the Global Digital Finance virtual summit Wednesday, Libra Director of Policy Julien Le Goc said the Facebook-backed entity was still looking at its original plan: "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."
  • Libra's original vision in 2019 had been to release one multi-currency stablecoin backed by a basket of up to 30 fiat currencies.
  • This was hit with resistance from government officials who were concerned about a private entity challenging their monetary sovereignty.
  • In an updated white paper earlier this year, Libra appeared to scale back its ambitions and said it would first create a series of single-currency stablecoins instead.
  • A multi-currency asset was still on the cards, the white paper read, but it would be backed by single-asset stablecoins, with the weighting reviewed and changed over time.
  • Le Goc confirmed Libra still wants to become a borderless payment method for the world's unbanked.
  • He said the Swiss-based association was also creating a new regulatory compliance framework in an "ongoing dialogue" with central bankers.
  • He added that Libra was also exploring ways it could make its governance structure closer to a public-private partnership with national governments.

Read more about

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Investing in the Future of the Digital Economy
October 18-19 | Spring Studio, NYC