The possibility that the virtual currency `` Libra '' will change direction or adopt coins corresponding to dollars and euros individually
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Facebook is a new virtual currency ', which is aimed at service started in 2020 Libra for,' said David Marcus, led by the Libra project of Facebook is linked to a fixed rate of the legal currency such as the dollar and the euro stable coin the It is reported that it suggested the possibility of adoption.
Facebook open to currency-pegged stablecoins for Libra project-Reuters
https://www.reuters.com/article/us-imf-worldbank-facebook-idUSKBN1WZ0NX
In a big reversal, Libra reportedly could peg its cryptocurrencies to national currencies | TechCrunch
https://techcrunch.com/2019/10/20/in-a-big-reversal-libra-reportedly-could-peg-its-cryptocurrencies-to-national-currencies/
Virtual currencies are subject to investment, and price fluctuations become severe. Since the price of what was purchased yesterday has tripled in terms of yen, and the virtual currency received from a business partner crashed several hours later, virtual currency is a practical currency that can be used in everyday life The current situation is low.
Stable coins were devised to stabilize the unstable market price of such virtual currency. The price of stable coins is determined by a fixed rate, and in particular, those that have been pegged to legal currencies such as dollars and yen (fixed rates) have attracted attention in recent years.
By pegging to legal currency, price fluctuations in virtual currency are linked to legal currency market prices, making it easier to predict market movements. In particular, by pegging to relatively stable legal currencies such as dollars and yen, the number of scenes where virtual currency can be used increases and the position as an international currency can be fully expected.
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Marcus commented, “The main goal of the Libra project is to build a more efficient payment system, but there is room to consider alternative approaches to currency tokens to use,” he said. “We can make stable coins for the euro and British pounds,” he said.
Libra was originally announced as a virtual synthetic currency in the currency basket system. The currency basket system is a method of fixing the rate based on a weighted average of multiple legal currencies at a certain rate.
However, it was pointed out that a virtual composite currency involving multiple national circumstances could overturn the global financial economy. In addition, the government authorities have raised concerns as they have become a hotbed for illegal money laundering and are being used to exchange illegal content.
At the G20 meeting held in Washington on October 18, 2019, it was considered to introduce strict regulations on virtual synthetic currencies, and `` International stable coins will be issued until global risks are addressed. It was agreed in the direction that it should not be done.
G20 Finance Ministers Agree on Strict Regulation of Digital Currency Serious Risk Concern-Reuters
https://jp.reuters.com/article/g20-libra-idJPKBN1WX2NQ
As Marcus says, if Libra adopts the form of `` stable coins pegged separately from the legal currencies of each country such as dollars and euros '', the aspect as an international currency will weaken, but the laws of each country Because it becomes possible to comply with regulations, it is quite possible that Libra will change direction.
Facebook plans to release Libra in June 2020, but has already had a tough start with a quarter of its early partners leaving . Marcus asked if the withdrawal of the partner company would affect Libra's release schedule, “(June 2020) is still a goal. We will address all legitimate concerns and I've always said that we won't move forward without approval, so it ’s not up to us to release it on time. ”
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