Facebook is taking a step back with its plan to change the global financial system with the new digital currency. The company is remodeling Libra, its cryptocurrency project, due to the regulatory pressure.
According to the latest reports, the Libra project will experience major changes before its upcoming release in 2020. The social media giant agreed, that Libra accepts government-backed fiat currencies, such as the US Dollar and Euro, together with its native Libra token.
Facebook introduced the Libra project last year, claiming it to be a new digital currency and financial infrastructure with a goal to move money around the world in easier and cheaper way.
Since Libra project was announced, Facebook has faced the resistance form regulatory authorities and governments around the globe. Various institutions expressed their worries over the possible disruption of monetary sovereignty, trust issues and also the power Facebook has and how it could affect the traditional banking.
With the latest decision, Facebook agreed with the authorities’ demands to redesign Libra so it could also support the fiat currencies. According to Bloomberg’s report, both crypto and fiat currencies will be available on the company’s digital wallet, Calibra.
The launch of the Calibra digital wallet is supposed to be Facebook’s first step in the cryptocurrency ecosystem. The wallet will be available in Messenger, WhatsApp and as a standalone app and is estimated to be launched together with Libra cryptocurrency later this year.