After a rough six months, Facebook has decided to revamp its cryptocurrency project Libra to garner regulatory approvals.
The social networking giant first launched the ambitious digital currency project in June last year.
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However, the project faced series of backlash both from partner companies and global watchdogs.
Within the four months of the launch, both Visa and Mastercard left the Libra project.
The prospect of it being used by Facebook’s billions forced global watchdogs to intensely examine the cryptocurrency project.
As per the original plan, Libra was to be backed by a wide mixture of currencies and government debt.
However, it raised fear that this could undermine countries’ control over currency and may destabilise monetary policy.
To address these concerns, Facebook announced changes in its policy.
As per the revamped plan, the digital currency will now be linked to individual national currencies. It also agreed to give global regulators rights to regulate the currency.
Furthermore, Libra Association, governing body of Libra, will now offer ‘stablecoins’ which will be backed by single national currencies,.
It will also offer a redesigned token based on these currency-pegged coins.
Swiss financial regulator Finma has confirmed that it has received an application for a payment system licence from Libra Association.
