A thank you again to a reader for keeping us alert to recent news on the Project Libra front. Below are links to a couple of recent update articles appearing in The Information. It looks like the project is taking some different turns in response to reaction from potential regulators.
I am getting the feeling that partnerships between central banks and private initiatives in the area of payments systems may be the next area to keep an eye on over time as these articles seem to suggest.
------------------------------------------------------------------------------------------------------------------------Facebook Revamps Libra Plans - Bowing to Regulators
"Facebook is scaling back its ambitious plan to upend the global financial system with a new digital currency.
Succumbing to pressure from regulators, Facebook has decided to offer its users digital versions of government-backed currencies, including the U.S. dollar and the euro, in addition to the proposed Libra token, according to three people familiar with the matter. Facebook still plans to go ahead with the launch of a digital wallet that would allow users to make purchases and send and receive money, though it will delay the rollout by several months."
Please click here to read the full article on The Information
THE TAKEAWAY
"Facebook’s overhaul of its plans to create a new digital currency called Libra raises a host of questions about how widely adopted the currency will be and how other changes to its strategy will differentiate Libra from existing cryptocurrencies."
"Facebook’s overhaul of its plans to create a new digital currency called Libra raises a host of questions about how widely adopted the currency will be and how other changes to its strategy will differentiate Libra from existing cryptocurrencies."
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My added comments: This is an area we have covered here quite a bit over the past several years. Some time ago we concluded that any changes to our present system from these "new technology" concepts would likely be gradual and meet with resistance from central banks and government regulators. This has proven to be the case as the pace of change in this area has moved very slowly with most central banks more inclined to just research and observe than to implement major changes.
Project Libra appears to have shaken the established system up enough to get them interested in figuring out ways to explore partnering with new technologies and continue looking into the feasibility of actually implementing "digital currencies" at some central banks here and there.
Most of the major central banks are still not showing any inclination to move forward any time soon with actual implementation. My guess is that we may see some partnerships with smaller regional central banks emerge sooner in an effort to upgrade payment services and promote more financial inclusion in areas where that is needed.
We'll continue to monitor this space and watch for news over time. Again, I want to thank readers here that continue to help me watch this and alert me to news items. It is greatly appreciated.
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