Cryptocurrencies

Facebook changed Libra plans due to regulatory pressure

Facebook decided to change its plans for the time being due to the severe political pushback and regulatory pressure. When the company first announced about Libra, analysts and politics had divided opinions. SEC office and the U.S. government feared that Facebook’s cryptocurrency posed a serious danger to the U.S. dollar’s authority. Despite the intense scrutiny, the company managed to push forward the project until now.

It seems regulators managed to hinder Libra’s development with the original course. As a result, Facebook no longer intends to make Libra token first, which they designed like the actual blockchain-based cryptocurrency. Instead, the Libra project will support existing government-backed currencies, like the U.S. dollar and the euro.

However, the Libra token will be completed and launched eventually, according to the report. So, this diversion from the course doesn’t mean that the company won’t release its crypto, rather it focuses on the other aspects of the project first.

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Furthermore, Facebook is delaying the launch of its separate Calibra digital wallet. The costumers would have had the opportunity to buy and store the cryptocurrencies with a smartphone if they were to use a Calibra wallet. They could even pay for various goods with it. But now the wallet will support not only Libra crypto but the multiple other currencies as well.

When will the company launch Calibra?

The project was due to release this summer, but according to new reports, it will come out in October. The wallet won’t be available worldwide, as was intended. Instead, it will offer customers only several government-backed currencies that the Libra project supports within the app.

The analysts think that this decision may slow the app’s popularity rate. However, Calibra’s money-storing and transfer features will be available by both Facebook Messenger and WhatsApp. While it’s still unclear when the people can begin using this wallet full-swing, the Facebook spokesperson stated that the company definitely intends to offer the Libra currency in its Calibra wallet.

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