UPDATED 19:56 EDT / MARCH 03 2020

BLOCKCHAIN

Facebook reportedly changing plans for its Libra cryptocurrency

Facebook Inc. is reportedly changing its plans for its proposed Libra cryptocurrency, a claim the company itself has denied.

The Information, quoting three people familiar with the matter, said Facebook has decided not to support Libra in its own products but will instead offer users the ability to make payments using digital versions of existing currencies.

Bloomberg reported a slight variation, suggesting that Facebook is looking at supporting multiple coins, including those issued by central banks and backed by leading currencies — turning Libra into a payments network. “The dream of a single global coin isn’t dead,” one source told Bloomberg. “The new plan could expand, not pull back from, the original vision.”

The potential problem with the proposals is that the average consumer may not see the difference between Libra as a payments network and existing payment systems such as those offered by PayPal Holdings Inc.

According to The Information, Facebook is also delaying the launch of its Calibra digital wallet that was meant to be at the core of the Libra rollout. The Calibra wallet would allow users to store Libra on their mobile devices and is key to the cryptocurrency working. The delay is said to be the result of Facebook reworking the wallet to support multiple currencies.

Facebook has officially denied claims that it was planning to drop Libra support, saying in a statement “reporting that Facebook does not intend to offer the Libra currency in its Calibra wallet is entirely incorrect” and that “Facebook remains fully committed to the project.”

Facebook announced Libra to much fanfare in June along with a supporting association that was backed by 28 members including leading tech and finance companies. The backlash began within 24 hours as politicians criticized the move.

Plans for the cryptocurrency went from bad to worse, with Senate hearings and founding members of the Libra Association quitting. PayPal became the first company to quit the Libra Association Oct. 6; Mastercard Inc., Visa Inc., eBay Inc., Stripe Inc. and Mercado Pago followed Oct. 11; and Booking Holdings Inc. left Oct. 14.

A possible change in direction for Libra was reported on Oct. 20 with reports that Facebook was considering launching multiple so-called stablecoins tied to traditional currencies instead. Five months later and presuming the reports today are true, that appears to be exactly what Facebook is doing.

Image: btckeychain/Flickr

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