Facebook is a member of the Libra Association, the non-profit organization that will act as a de facto central authority for the digital currency. The Libra Association has petitioned the Swiss Financial Market Supervisory Authority (FINMA) to issue currency-backed stablecoins, as well as a series of stablecoins tied to currencies such as the dollar.
Stablecoins are designed to minimize price fluctuations in cryptocurrencies such as Bitcoin and Ethereum. A stablecoin can be tied to a cryptocurrency, fiat currency or for exchange of goods.
The Libra Association has been criticized for its close association with the troubled social media network, which has faced several privacy scandals in recent times. The association announced a reform in April to address regulators' concerns that the digital currency could facilitate money laundering.
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