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Vandana Malik
Apr 17, 2020
by Vandana Malik

Facebook Planning to Scale Back From Cryptocurrency Libra

Facebook
Facebook, the largest social media platform has just revealed that it is planning to scale back its cryptocurrency Libra. It was announced yesterday that Facebook will be scaling down its plans for Libra. Libra is a licensed cryptocurrency by Facebook which has not been launched yet.

This recent announcement regarding the delay of Libra came because a lot of financial regulators are concerned about the current economic scenario. According to them, with the introduction of Libra, governing money will get even more difficult.

Facebook and Libra planned to offer a single global currency 

Facebook and Libra have announced almost a year ago that they will be offering a single global currency. This currency was supposed to be backed by the government currencies particularly the US Dollar and Euro.

Mark Zuckerberg, CEO of Facebook has said that Libra aims to create a very simple financial infrastructure globally. This infrastructure will be there to empower billions of people out there across the world.

Regulators concerned about undermining central banks

The major reason because of which there is a delay in the launch of Libra is the concern of the financial regulators. According to them, with the introduction of Libra, money laundering will automatically get very easy. This will ultimately result in undermining the central banks as well.

Libra is now creating the stablecoins which will be backed by a single currency. It has also introduced several sanctions related to the anti-money laundering and anti-terrorism. The users will also have protection as it is also preparing Libra Reserve.

David Marcus, Co-founder of Libra has said that Facebook has already stepped back from the cryptocurrency. This step is followed by a huge reduction in funding as well which is even less than 10%. However, this stepping back of Facebook could also result in certain amendments and it might again plan to launch crypto later this year.

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    Facebook Planning to Scale Back From Cryptocurrency Libra
    Vandana Malik
    Vandana has received Master of Arts degree in English from GEU Dehradun. She is currently working as a content writer with Agio Support Solutions and earlier worked as a sub-news editor at Business News and Information Services Private Limited. She is an enthusiastic content writer and aims to bring a compelling yet informative content to the audience. Meanwhile, enhancing her own knowledge in the cryptocurrency and blockchain industry.

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