The Libra Association today announced progress made on modifying its Facebook-developed cryptocurrency and payment system to meet regulatory concerns.
CEI Senior Fellow John Berlau welcomed progress in currency innovation, especially in the midst of a devastating pandemic.
“Today’s white paper outlining steps forward for the Libra cryptocurrency developed by Facebook is a positive sign that American firms big and small are not letting the current pandemic hinder ingenuity and innovation. Changes to the Libra’s initial design, such as the new option of single-currency ‘stablecoins’ that can be denominated in the currency of one’s country, could result in faster payments and lower fees to transfer at a time when it is desperately needed.
“Cryptocurrency and the associated blockchain technology will have valuable roles to play in the health and economic recoveries from the Covid-19 crisis, though at this point we may not know all the important tasks they will fulfill -- just as few knew before the crisis that distilleries would be such efficient makers of hand sanitizers. In this sector, as with others, regulators should clear away the #NeverNeeded red tape.”
The Libra Association put out a white paper spelling out main goals, including offering single-currency stablecoins in addition to a multi-currency coin; boosting system safety; and working within a system of prior regulatory approval for blockchain needs.
Report on cryptocurrency