Project Libra starts supporting the euro and the dollar to face regulatory pressure

Project Libra starts supporting the euro and the dollar to face regulatory pressure

Facebook's cryptocurrency project Libra has been facing increasing scrutiny by US and European regulators. Now, Facebook's digital currency will no longer be at the center of its digital payments strategy. As soon as it is launched, the project will start supporting stablecoins, such as the euro or the dollar, in addition to the pound.

In a press release, Libra Asssociation states that the project will be overseen by a set of central banks and regulatory bodies from 20 countries organized by FINMA, its Federal Financial Market Surveillance Authority.

In addition to the changes in the type of digital currencies available, the association leading the project indicates that it has made some changes to the Libra cryptocurrency. Reuters, Christian Catalini, one of Calibra's leading economists, said the currency was simplified relative to the original design. In addition, Libra Asssociation also states that it will reinforce the protection of the cryptocurrency reserve, thinking of possible cases of extreme instability in the markets.

The Libra Association is also planning to strengthen security measures to prevent the use of digital currency in cases of money laundering or to finance terrorist organizations. Accordingly, the association intends to register with the US Treasury Department's Financial Crimes Enforcement Network.

At the beginning of March this year, several sources already foresaw a series of changes to the project, including support for stablecoins. It is recalled that in October 2019, David Marcus, co-creator of the project, had announced that the company was looking for alternative approaches to the currency token it intended to use.

The sources also revealed that Facebook would postpone the launch of the Calibra digital wallet until October this year. Apparently, the company plans to allow any user the possibility to buy and save cryptocurrencies from their smartphone and use them to make payments.

Although the technological giant intends to integrate Calibra in WhatsApp and Messenger, the digital wallet will be limited to some world regions, and its availability may be conditioned to the currencies supported by the project.