The announcement of Facebook entering the crypto world by preparing to launch its digital currency “Libra” created a huge media momentum around the world

About nine months after the white paper that revealed some details about Facebook’s “Libra” currency.

Reliable news media reported that Facebook will radically reconsider the launch of the “Libra” currency.

Facebook faces more resistance than it thought from regulators:

According to Bloomberg reports,BBC“Facebook is facing more resistance from regulators than it thought.

Most cryptocurrency companies are now aware of the struggles that can be faced in trying to win the approval of regulators and seek approval for ambitious crypto projects.

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When Libra was first announced, observers suggested that Facebook’s offering could pave the way for other crypto companies.

Being a household name has a huge impact in terms of persuading regulators to accept cryptocurrencies in general.

Instead, it appears that resistance from regulators has been strong and enough to break Facebook’s design.

According to recent reports, Facebook is now reconsidering its promise of Libra.

Facebook is looking to renew the “Libra” currency to avoid competition with central banks:

Bloomberg reports that Facebook is seeking to renew the “Libra” currency, and is considering using a system that accepts multiple digital currencies.

What’s more, this report also indicates that Libra accepts digital currencies likely to be issued by central banks.

As such, Facebook hopes to make the project more attractive to global regulators.

Essentially, this means that none of the global central banks will be in direct competition with Libra.

Alternatively, it could be compatible with the upcoming Libra network.

The report also indicates that Facebook is scaling back its original plans for Libra.

The Libra cryptocurrency project was originally intended to create a single global digital currency.

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As such, Libra would have come into direct confrontation with the current dominant currency, Bitcoin.

Facebook had hoped to win the title of the dominant digital currency.

Will Libra instead become another PayPal “competitor”?

The same report issued by “Bloomberg” indicates that the new “Facebook” plan is closer to a payment network, and accordingly this payment network will work with multiple currencies.

The Bloomberg report notes that this would essentially position Libra as a competitor to existing payment systems such as PayPal.

Facebook also states that it remains fully committed to its project, but it is unclear in what capacity.

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According to Dante Disparte, Head of Policy and Communications at the Libra Association, Libra has always been a payment system, stating:

The Libra Association has not changed its goal of building a global, regulatory-compliant payment network, and the underlying design principles that underpin that goal have not changed.

However, sources familiar with the project indicate that these plans and redesigns remain “in a state of flux.”

This means that this fix is ​​still not entirely certain.

The only certainty is that Facebook is facing regulatory problems with its digital currency, Libra.

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