Libra developers published a roadmap for the project, which is not tied to dates, but to the number of partners who deployed nodes.
The document outlines 4 main stages that must be achieved before the launch of the Libra network.
- The first stage – five partners deploy 5 operating nodes (nodes).
- The second stage – 25 partners deploy their nodes.
- At the third stage, 75 partners will raise the nodes.
- And by the time the fourth stage is reached, the Calibra team plans to have 100 nodes in the network. Those. all partners will deploy their nodes.
The developers note that each node will “work using both local and cloud infrastructure,” adding that “a wider variety of infrastructure will provide greater resiliency of the Libra network.”
All four stages are part of the Pre-Mainnet Libra period. This is basically a testing period, in which several Libra partners who successfully deployed full Libra nodes participate. Pre-Mainnet will allow partners to successfully interact with each other and test the stability of the Libra network.
“WE WANT THE LIBRA NETWORK TO MEET STRICT PERFORMANCE CRITERIA AND OVERALL SYSTEM STABILITY BEFORE OPENING ACCESS,” THE DEVELOPERS EXPLAIN.
Mono Roadmap Project Promotion Track Online on Github
Government report details that stablecoins could pose a risk to the economy
- Governing body in the United States, FSOC released a report, expressing concerns around stablecoins.
- The report highlighted potential threats to the economy from the adoption of coins such as Libra.
The Financial Stability Oversight Council distributed a new report this week, which covered ground on a range of risks to the U.S. financial system and economy.
A section of the report detailed the threats that are observed from an increase in stablecoins, such as Facebook’s proposed Libra.
As per the report, the FSOC said:
If a stablecoin became widely adopted as a means of payment or store of value, disruptions to the stablecoin system could affect the financial system and the wider economy, warranting greater regulatory scrutiny. A decline in the value of certain digital assets could result in the transmission of risk to the financial sector through financial institution exposures, risks to the payment system, wealth effects, and confidence effects. Consumers, investors, and businesses could also face losses if the market price of such assets is unstable. Risks to the payment system, if not properly managed, could present financial stability risks, given the importance of a well-functioning payments system in facilitating commercial activities.
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Mnuchin ‘Fine’ With Libra Launch, But Crypto Project Must ‘Fully’ Comply With AML Rules
Steven Mnuchin, secretary of the U.S. Treasury, has no issue with the launch of the Facebook-led Libra project – as long as financial rules are followed.
“I’m fine if Facebook wants to create a digital currency, but they need to be fully compliant” with financial secrecy and anti-money laundering rules, he said Thursday, according to a Bloomberg report. “In no way can this be used for terrorist financing.”
Mnuchin was speaking in Washington, D.C. at a hearing of the House Financial Services Committee in response to a question from a lawmaker.
Since Libra was announced in June, much to the chagrin of the globe’s regulators and central banks, Mnuchin indicated he’s met with Facebook a dozen times to talk over regulatory concerns. That’s slowed the pace of the payments project’s move toward launch, he said.
Libra will be a stablecoin for payments through Facebook platforms and other wallets and products and is likely to be pegged to a basket of national currencies and government bonds.
At the hearing, Mnuchin also said the U.S. is unlikely to develop a digital currency in the near term, Bloomberg wrote.
“[Federal Reserve Chair Jerome] Powell and I have discussed this – we both agree that in the near future, in the next five years, we see no need for the Fed to issue a digital currency,” Mnuchin said.
The hearing saw questions over China’s plans to launch a digital yuan in the near future. The European Central Bank also made comments recently that it might launch a digital currency if traditional payments methods are not improved for consumers.
Powell has previously indicated that the Fed is evaluating a digital dollar, but the benefits are not yet clear.
Facebook Libra News Today – Top Headline for Facebook Libra, December 2nd 2019
- U.S lawmakers disagree over Libra’s security classification
- Is Libra security or not?
Still on the matter of whether Libra security or not? Some United States Lawmakers are looking to term stablecoins as securities. With Libra considering adopting fiat-pegged stablecoins rather than a single token supported by a bag of national currencies. The proposed Crypto project by Facebook might be experiencing another regulatory issue.
For now, lawmakers are sponsoring the bill stating that stablecoins should be termed as securities to safeguard U.S consumers. Should be bill be passed, stablecoins projects like Libra will possibly fall under the purview of strict U.S securities regulations
Crypto critics of the motion state that such measures by the regulatory body will only serve to further diminish the country’s position on the evolving digital landscape. Some analysts have long accused regulators of disturbing innovation in the U.S crypto and blockchain space.
So far, Libra still stands its stance that its proposed stablecoin project is a commodity. The association is also surging forward with developing the payment system. Recently, the association released updates on the state of its testnet and itemizing the number of transactions carried out so far.
Is Libra security or not?
Two Texas representatives, Lance Gooden and Sylvia Garcia have proposed a piece of legislation that will term stablecoins as securities. The bill which is named “Managed Stablecoins are securities Act of 2019,” the bill is sponsored by representatives from both sides of the corridor. This bill could plan an even greater regulatory weight on stablecoin projects like Libra.
In a statement issued by The Hill, Representative Garcia, he stated that “Managed stablecoins, such as the proposed Libra, are securities under existing law. This legislation simply clarifies the statute to remove any ambiguity.”
Rep. Gooden, a co-sponsor of the bill also resonated with the sentiment that Congress should take the lead in forming the legal landscape for cryptos and the digital space in general. According to Gooden, “It’s the responsibility of Congress to clarify the regulatory framework that will apply to stablecoins, especially now that mainstream institutions are offering them to consumers.”
Bitcoin (BTC) Price Today – BTC / USD
It seems that consumer protection fears are at the heart of lawmaker’s deeds to put stablecoins under the security token model. Although, such a move increases the regulatory liability on Stablecoins. So far, U.S securities law consists of a litany of reporting and compliance requirements. With the prospect of Libra launching soon still uncertain, it remains ambiguous the type of token the project will use.