What's Hot

    First fundraiser for Doodles and new partnership

    June 25, 2022

    More than 50 crypto ATMs will be installed in Hispanic supermarkets in the United States

    June 25, 2022

    The bitcoin (BTC) invites itself in the programs of the University of Cincinnati

    June 25, 2022
    Facebook Twitter Instagram
    Facebook Twitter Instagram
    THECRYPTNEWS
    • Home
    • News
    • Guides
    • NFT
    • Analysis
    THECRYPTNEWS
    Home » Libra: the project pivots under pressure from regulators
    Guides

    Libra: the project pivots under pressure from regulators

    AdminBy AdminDecember 25, 2021No Comments3 Mins Read
    Share
    Facebook Twitter LinkedIn Pinterest Email

    In the name of compliance, the Libra association is making concessions on the architecture of its decentralized network and the assets that will circulate there.

    Will central banks create their virtual currencies? The Libra association hopes so.

    She mentioned this on numerous occasions in the White Book relating to its project formalized almost a year ago: the creation of a “global financial services infrastructure”.

    Since that announcement, regulators have stepped up to the plate.
    The association reports on this in an update – the first – of the white paper. She incorporated four key changes. They concern :

    • The currencies that will circulate on the network
    • The compliance framework
    • The underlying blockchain
    • The Libra reserve

    The latter must contain an amount at least equal to the face value of each virtual coin (Libra Coin) in circulation.

    Details have been provided as to its constitution.
    Broadly speaking, it will include at least 80% of very short-term government securities (maximum maturity of 3 months) from issuers rated at least A + at S&P and A1 at Moody’s. The rest will consist of cash and equivalents. A regularization stock will be added to it to deal with possible losses.

    Libra will not be alone

    The initial objective was to develop a virtual currency (the Libra, ≋LBR) backed by a basket of fiat currencies.

    Faced with the concerns of regulators in matters of monetary sovereignty, it was decided to create other virtual currencies. More precisely stablecoins, each backed by a currency, starting with the euro, the pound sterling, as well as the US and Singaporean dollars. All will be covered by the reserve. The volume in circulation will adjust to demand.

    Libra will be implemented as a “composite” indexed to these stablecoins, through a basket whose composition may change. A model similar to special drawing rights from the IMF.

    A less open network

    On the compliance aspect, the revision of the white paper clarifies the categories of participants in the Libra network.

    At the top of the pyramid will appear the association (and its subsidiaries), then its members.

    Then come the “Designated Dealers”, assimilated to “root” entities. It is through them that the virtual currencies will be distributed.

    Next in line are VASPs (Virtual Asset Service Providers), which will provide financial services on the Libra network.
    There will be two types. On the one hand, the “regulated”, in the sense that they are registered or licensed in a jurisdiction that is a member of the Financial action group. On the other hand, the certified, who are not in this case, but will have passed a process of due diligence orchestrated by the Libra association.

    The “Unhosted Wallets” will remain. That is, all Libra addresses not associated with one of the above categories. Unlike VASPs, they cannot, by default, exceed a deposit and transaction limit.

    The blockchain on which this network will operate was originally supposed to be open, without permissions.

    Faced with regulators’ concerns about the ability to meet compliance requirements within this framework, the “no permissions” approach has been abandoned.

    Applicants for the operation of a validation node will undergo a process of due diligence. On the basis of public criteria (technical capacity, history of economic performance, etc.), scores will result which will make it possible to rank the applications.

    Main illustration © Libra

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
    Admin
    • Website

    Related Posts

    ABF: the promise of a national blockchain at VivaTech

    June 17, 2022

    NFT Cloud: what we know about the Salesforce initiative

    June 13, 2022

    “Smart contract”: development security to be reviewed?

    April 29, 2022

    Cryptoassets to the rescue of Ukraine?

    March 4, 2022
    Add A Comment

    Leave A Reply Cancel Reply

    Recent Posts

    • First fundraiser for Doodles and new partnership
    • More than 50 crypto ATMs will be installed in Hispanic supermarkets in the United States
    • The bitcoin (BTC) invites itself in the programs of the University of Cincinnati
    • Cardano (ADA) Founder Offers Crypto Self-Certification
    • Axie Infinity: The company behind the game wants to compensate the victims of the hack

    Recent Comments

    No comments to show.

    Subscribe to Updates

    Get the latest sports news from THECRYPTNEWS.

    Advertisement

    Archives

    • June 2022
    • May 2022
    • April 2022
    • March 2022
    • February 2022
    • January 2022
    • December 2021

    Categories

    • Analysis
    • Guides
    • News
    • NFT

    The leader in news and information on cryptocurrency, digital assets and the future of money, THECRYPTNEWS is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies.
    We're social. Connect with us:

    Facebook Twitter Instagram Pinterest YouTube WhatsApp Reddit
    Top Insights

    First fundraiser for Doodles and new partnership

    June 25, 2022

    More than 50 crypto ATMs will be installed in Hispanic supermarkets in the United States

    June 25, 2022

    The bitcoin (BTC) invites itself in the programs of the University of Cincinnati

    June 25, 2022
    Get Informed

    Subscribe to Updates

    Get the latest creative news from THECRYPTNEWS

    Facebook Twitter Instagram Pinterest
    • Home
    Copyright © 2021 Thecryptnews.com

    Type above and press Enter to search. Press Esc to cancel.

    We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept All”, you consent to the use of ALL the cookies. However, you may visit "Cookie Settings" to provide a controlled consent.
    Cookie SettingsAccept All
    Manage consent

    Privacy Overview

    This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
    Necessary
    Always Enabled
    Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
    CookieDurationDescription
    cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
    cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
    cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
    cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
    cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
    viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
    Functional
    Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
    Performance
    Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
    Analytics
    Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
    Advertisement
    Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
    Others
    Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
    SAVE & ACCEPT

    DMCA - Terms and Conditions - Privacy Policy