Libra, Facebook’s cryptocurrency had officially announced in June last year, and then it delayed after running into a never-ending set of hurdles, might finally introduce in January 2021.
According to a report by the Financial Times, they cited three anonymous people involved in the project. But, it seems that this new Libra will be a restricted version of what Facebook initially visualized.
Facebook’s cryptocurrency “Libra” will launch soon in January
Moreover, Libra was supposed to introduce a few digital coins, with some of them showing individual fiat currencies that include the U.S. Dollar, and one being a composite of all these coins. This was also a change from a Libra’s real plan of rolling out one coin that would be backed by a basket of many currencies.
Furthermore, the Financial Times reports that the organization plans to launch a U.S. dollar-pegged stablecoin and then roll the other currencies later.
Besides this, the dollar-pegged stablecoins are famous cryptocurrency at this time. Organizations like Tether Limited, Paxos and Coinbase have also introduced such coins USDT, BUSD, and USDC accordingly, with the coins’ total market caps reaching hundreds of millions or even billions of dollars.
The point of stablecoins is to give some price predictability and stability to users, as opposed to the price volatility of cryptocurrencies like Ethereum and Bitcoin.
Most probably this is why The Libra Association “Geneva”, based in Switzerland, a non-profit company established by Facebook and many other organizations, has planned to pare down its aims when it comes to Libra. Although dollar-pegged stablecoins have been around for some time, and it is tough for regulators to dismiss them as harmful, as they did with Libra’s original strategy.
At the launch event, people at Libra told reporters that the plan is to minimize the instability, “so holders of Libra can trust the currency’s ability to preserve value over time.” The organization also states that one of the primary goals of the project is to give the 1.7 billion people who are unbanked access to a global currency, and remittances were often mentioned as a vital use case. But if the Libra, the coin, is pegged to the U.S. dollar, this could mean different prices for people in countries outside of the United States.
To reach where it is now, Libra has to leave a couple of partners like PayPal, which recently introduced support for Bitcoin and other cryptocurrencies on its platform. Moreover, PayPal has also appointed many new executives like an ex-chief legal officer of HSBC named Stuart Levey, who presently works as a CEO of Libra.
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