Facebook Libra Makes Changes to Whitepaper – CryptoPlanet
Facebook Libra has made a change to the whitepaper. In the update, there will be no dividends paid to the early investors in the project. Facebook announced the Libra project a few months ago. Since then, the project has faced criticism from lawmakers globally.
In the original whitepaper, early investors would have received a share of the interest accrued from the reserve assets. The remainder would be used to fund other things related to the Libra project. In the new whitepaper, that interest will not be shared with early investors. Instead, it will be used for the sole purpose of covering operational costs, ensuring that transaction fees are kept minimal, and supporting the adoption and growth of Libra. This update was likely made to prevent a conflict of interest between the end-users of Libra and the members of the Libra Association.
Libra Could be classified as a Security
Lawmakers in the US have proposed to have stablecoins classified as securities. This would bring securities under the domain of the SEC, which has not been kind to the crypto sector. However, Libra has opposed the idea of having it classified as a security.
Some expected that after all the criticism the project received in the US and abroad, it would shut down. This is especially so after some of the founding members such as Visa left the Libra Association. However, the project is undeterred. It has forged on and it expects to launch by next year.
The Libra Association has committed to only launch the project in nations where it has received approval. However, that may never happen in some places in the world. For instance, France has vowed that Libra will not be allowed to launch there.
Various tech CEOs have criticized the project as well. For instance, the Apple CEO has said that a private company should not be allowed to issue a currency. If this project succeeds, it could make Libra the most powerful company on earth. For instance, it could disrupt the economies of small countries by making it harder for them to control their monetary policy.
Published at Tue, 17 Dec 2019 20:57:54 +0000
{flickr|100|campaign}
