20 Apr 2020 Samantha McLauren
Libra Association Enters The First Phase Of Licensing
Libra, the project that caused mass regulatory havoc worldwide, now appears to bend under pressure from regulators. Libra Association announced its idea of a single global stablecoin would be overhauled to respond to regulatory criticism. The main area of criticism is Facebook’s plans to create a global stablecoin in a not-yet regulated financial sector, which could impose severe threats to security.
Facebook decided to split the stablecoin into several subsidiaries, each tied to a specific currency. For example, the North American Libra would be backed by U.S. dollars, while the European stablecoin would be most probably supported by Euro or Pound Sterling. This move eliminates the firstly-announced idea of a flexible payment and value transfer solution, but it will see less resistance amid regulators.
Libra Association, however, still plans to issue a multi-currency stablecoin, backed by a commodity with global effects, like Gold or oil. This dilutes Facebook’s initial idea of creating a digital currency for use in online communities, such as social media. By utilizing Libra, Facebook planned to boost the significance of the online marketplaces, as well as connect to people who sit outside the traditional banking infrastructure sector.
The core reason for Facebook’s ambitions to launch a global stablecoin project is simple – to attract new users, as the company reached a global presence and hegemony. However, to drive ad sales figures up, Facebook needs new channels to attract users – primarily via a wallet app.
Amid the news of Libra’s idea overhaul, Facebook announced that the company would hire at least 50 individuals in Ireland, which would work on Libra’s development. As of press time, there is a small focus group in Dublin, which runs under the Calibra subsidiary. However, Facebook plans to increase both the workload and the occupied people and to reach hundreds of hired individuals across various roles in the company.
However, Calibra needs further regulatory approval to start the hiring procedure.
Laura Walsh, head of operations at Facebook, confirmed the information, adding that “the company is continuing to invest in the Dublin team, despite times of global uncertainty.” „We are now on the lookout for experts in fraud prevention, regulatory compliance, customer care, and work management. These jobs would further enhance operations in Facebook’s Calibra wallet team.” Walsh added.
Gareth Lambe, who acts as head of Facebook Ireland, stated that the country plays “a significant role in the worldwide Facebook operations.” „We are exceeding 60 teams, which include software engineers, security experts, compliance specialists, as well as marketing and sales teams. We also support a number of global and regional teams that operate from Ireland.” Lambe added.Stablecoin Facebook Libra Libra Association Calibra