The Libra Association's new white paper contains radical changes in how the proposed Libra payments system will function. As I discuss in the video below, the new proposal is arguably less ambitious than the one they circulated last June, which was excoriated by politicians, regulators . . . and thousands of angry bloggers posting from their basements. The new proposal is aimed at satisfying the politicians and regulators, but will leave the bloggers angry.

The heart of Libra's new proposal is 4 key changes:

  1. Offering single-currency stablecoins in addition to the multi-currency coin.
  2. Enhancing the safety of the Libra payment system with a robust compliance framework.
  3. Forgoing the future transition to a permissionless system while maintaining its key economic properties.
  4. Building strong protections into the design of the Libra Reserve.

Check out my video to hear my thoughts on each of these changes and the takeaways for FinTechs!

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