Will Libra 2.0 Be More Dangerous Than The Original?

Facebook just published the new version of the Libra whitepaper with a few important changes. Now we ask ourselves: will Libra 2.0 be even more dangerous than the original or will it be more appealing to the regulators?

If you remember well, a year ago when Facebook announced Libra, the whole world was shocked. The company expected that they will move along with no major problems but their idea caused havoc between governments and regulatory bodies who fired back at the social media giant. They held conferences and headings and even created new legislation that was supposed to stop the project in its creation.

However, last week, the social media giant revealed Libra 2.0 which is an updated version of the project with key changes to the whitepaper. It seems that this new version was tamed to please the regulators around the globe. The cover letter on the front of the whitepaper explains that:

 ‘’We appreciate the discussion with policymakers around the world who have helped us understand key concerns so that we can integrate actionable improvements into the Libra payment system’s design and into a phased rollout plan.’’

The whitepaper addresses a few key changes which were made that will calm the regulators’ concerns. Some analysts believe that despite the efforts to create a compliant platform, Facebook will not have any more luck than it did the last time so will Libra 2.0 get the same response?

Facebook says that it will be ‘’enhancing the safety of the Libra payment system with a robust compliance framework’’ but the most important thing to know is that Libra 2.0 takes the same ‘single token’ model. Libra planned to operate with a single coin and the Libra token was supposed to be tied to a ‘’basket of digital currencies.’’ The new digital coins as Libra plans to launch include multiple stablecoins and each of them was tied on a one-to-one basis to different fiat currencies. There are even plans to create another coin that could be used to facilitate cross-border transactions.

Venus, which is the latest iteration of Libra, aimed to develop multiple digital currencies that were based on local fiat currencies and to partner with governments, tech companies, and corporations and to get them involved in the blockchain ecosystem. The co-founder of Sapien Ankit Bhatia said:

 “Libra’s move to include several stablecoins, each backed by a different fiat currency, means that the value of the multicurrency Libra (LBR) will be tied to value controlled by governments and central banks.’’