Friday, July 30, 2021

Facebook Libra set to Launch January 2021

Facebook Libra launch Opposed by the G7

Facebook Libra cryptocurrency is readying to launch as early as January. This was reported by the Financial Times on Friday, citing three unidentified people involved in the project.

The Facebook Libra Association that will issue and govern the crypto plans to launch a single digital coin backed by the dollar.

The move would represent an even bigger scaling-back of the project’s ambitions than that proposed in April. It was scaled back in response to a regulatory and political backlash against the project.

Facebook Libra, unveiled last year by Mark Zuckerberg last year, was relaunched in slimmed-down form. This is after regulators and central banks across the world raised concerns it could upset financial stability.  Also, they say it could erode mainstream power over money.

The Libra Association, of which Facebook is one of 27 members, is seeking the go-ahead from Switzerland’s markets watchdog to issue a series of stablecoins backed by individual traditional currencies, as well as a token based on the currency-pegged stablecoins.

Related: Facebook Libra launch Opposed by the G7

Yet under the body’s new plan, other coins backed by traditional currencies, as well as the composite, would be introduced at a later date.

The Libra Association did not immediately reply to a request for comment. FINMA, the Swiss regulator, did not elaborate beyond a statement in April confirming receipt of Libra’s application for a payments licence.

The Facebook Libra launch is still dependent on regulatory approval. Facebook hasn’t gotten much love for its crypto project. Partners have bolted from the project, details have shifted and legislators have criticized the plans. Nonetheless, Facebook has indicated that it will press on.

Stablecoins are designed to avoid the volatility typical of cryptocurrencies such as bitcoin. This makes them more suitable for payments and money transfers.

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