Libra, Facebook’s cryptocurrency project that involves a consortium of other big corporations, has released a new White Paper. In the face of stiff regulatory pressure, Libra will now just be a stablecoin protocol rather than having its own independent cryptocurrency. Also, Libra will never transition into a permissionless system. In other words, the Libra project has been neutered, and at this point it appears to be just another stablecoin like Tether (USDT), if not worse than Tether (USDT).

Originally Libra was aiming to be a corporate version of a Central Bank, and it would issue its own independent currency. Basically, Libra would have kept various assets in its reserves, and the corporations involved with Libra would collectively make decisions on how much Libra to print, in addition to other monetary policy measures.

Simply, Libra was going to be like a Central Bank, except it would be run by corporations rather than a national government. Due to this, Central Banks and governments saw Libra as a threat, since they predicted that the existence of Libra could take power away from national fiat currencies and Central Banks.

Due to governments and Central Banks being anti-Libra, Libra had no chance of getting through the regulatory process as is. Now the Libra project has been completely changed so that it has a chance at getting regulatory approval.

Libra will now offer stablecoins pegged to the USD, EUR, GBP, and Singapore Dollar (SGD), and these stablecoins will function quite similar to Tether (USDT). There will be a multi-currency Libra as well, but it will just be an aggregate of these stablecoins, rather than an independent currency.

Also, Libra will never become decentralized in any way, it will remain a permissioned blockchain forever, making it not much better than a fiat bank account, since transactions could be frozen or reversed.

Thus, Libra will now just be a highly centralized stablecoin when it finally does launch, and therefore is no longer a big deal. In fact, at this point Tether (USDT) looks far more favorable than Libra, since at least Tether (USDT) is relatively anonymous and doesn’t commonly get frozen or reversed.