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Fed Economists Defend Original Plan For Facebook's Libra Stablecoin
Summary: Fed economists came to the defense of Facebook's original Libra stablecoin plan, countering arguments that the cryptocurrency could overthrow fiat currencies in a report released on Monday, June 22. The vision for the original Libra coin was a cryptocurrency backed by multiple global currencies. Lawmakers argued that the project could undermine the stability of the currencies ...
Fed economists came to the defense of Facebook's original Libra stablecoin plan, countering arguments that the cryptocurrency could overthrow fiat currencies in a report released on Monday, June 22.
The vision for the original Libra coin was a cryptocurrency backed by multiple global currencies. Lawmakers argued that the project could undermine the stability of the currencies underlying the coin.
Libra's team gave in to lawmakers, agreeing to back Libra with various stablecoins linked to fiat currencies — like dollar-backed Tether — rather than the currencies themselves.
But now, Fed economists have demonstrated in their report that while the original plan for the stablecoin could gain a high global demand, the changing value of fiat currencies would prevent it from displacing them.
By Emily Mason
Tags: Facebook,Libra,Stablecoin
Link: Fed Economists Defend Original Plan For Facebook's Libra Stablecoin [Copy]
