The proposed launch of Facebook’s owned digital currency Libra is still facing stern criticism and scrutiny from regulatory bodies around the world, especially in the United States.
As this continues, the CEO of Binance, Changpeng Zhao, also known as CZ, recently gave the social media giant three possible options it could adopt before launching Libra.
CZ Binance Suggests Three Options for Faecbook’s Libra
CZ just called Facebook’s attention to three options it could apply in its quest to launch the digital currency, Libra.
This came in response to one of the recent articles from CoinDesk, shared on Twitter. The quote says, “Under pressure from regulators, the Libra project may consider a fundamental change to the way its planned crypto payments system will operate”.
Replying to the above quote, CZ Binance suggests that Facebook should incorporate the top 10 digital tokens for some time on its platform before the subsequent addition of Libra.
His second suggestion is about blocking the opposing regions from accessing its service once Libra is launched. These opposing regions include the United States and some countries in Europe and Asia.
CZ’s last suggestion sounds somewhat rigid. He said Facebook should not care about the regulatory scrutiny it’s facing globally, but rather go ahead for Libra’s launch.
He said, “Baskets won’t work for many reasons. Facebook could 1, accept the top 10 cryptos to get users and regulators warmed up, then slide in Libra. Or 2, geofence opposing regions, including the US, to get started. Or 3, say “Libra doesn’t care” and push on…”
Facebook is largely facing a host of backlashes for its rigid decision to launch a self-owned digital currency Libra. Some of these criticisms are based on the fact that the social media giant cannot be trusted when it comes to the security of the assets of its potential users, considering previous allegations against the social media gaint.
The scrutiny comes mostly from the US Congress, who had stated that Facebook is not trustworthy due to its past anomalies in connection with the illegal use of users’ Personal Data. However, many crypto enthusiasts believe that the scrutiny has lots to do with the protection of US Dollar, the world’s reserve currency.
Actually, the user-base in Facebook’s portfolio is enough reason to intimidate the giant countries with glorified economy and currency. According to estimation, Facebook has at least 2.5 million monthly active users. This capacity alone is relatively 40 percent of the world’s population.
Fear of Missing Out is Prompting Countries into Digital Form of Money
Libra’s initiative prompted the most populous country in the world, China, to propose the digital form of its fiat currency Yuan. And reports say that the country is not backing down on its decision.
Some even suggested that Facebook should have adopted Bitcoin and other top coins rather than proposing its own version. All these coupled together have aggravated the issue bothering on the forthcoming launch of Libra.
Libra is to be pegged against US Dollar and scheduled to go live by 2020, but doubts have been cast on the release from every quarter. Even Ripple’s CEO, Brad Galinghouse shared that the regulatory check, which Libra is presently undergoing, could delay its official launch for 2 or 3 years.