Facebook’s crypto currency Libra to be launched as early as January 2021
Initially, Stablecoin Libra will be pegged only to the US dollar.
The long-awaited Facebook crypto currency Libra could see the light of day as early as January 2021, according to a new media report.
After Facebook’s crypto project has been thwarted by regulators and governments around the world for more than a year, Libra could soon be launched in the form of a Stablecoin linked by Bitcoin Evolution to the US dollar. This was reported by the renowned Financial Times on 27 November.
As a reminder: Stablecoins are crypto-currencies that receive their eponymous (value) stability through their peg to an external asset such as gold or the US dollar.
The Financial Times bases its reporting on three sources from the Libra project. According to these, the Libra Association, which is responsible for the management of the project, intends to add other national currencies as a link to the Stablecoin at a later date.
Although a launch is planned for January, no exact date has been set as it depends heavily on when the Swiss Financial Market Authority (FinMA), which is responsible for the Swiss-based project, gives the green light.
A FinMA spokesperson, at Cointelegraph’s request, does not wish to comment on a possible Libra launch in January 2021, but instead refers to a communication from his authority regarding the related approval process, which states: „As is otherwise customary, FinMA will not publish information on the status of the process nor speculate on its conclusion.
The Libra Association has not yet responded to Cointelegraph’s request at the time of going to press
After the crypto project was launched in June 2019, it was followed by fierce headwinds from governments and regulators around the world, prompting some of the project’s initial investors, including well-known companies such as PayPal and MasterCard, to pull out. The currency basket to which the Libra was originally to be pegged initially included the Japanese yen, the euro, the British pound and the Singapore dollar in addition to the US dollar.
As the Financial Times report shows, many Libra investors see the appointment of former HSBC top manager Stuart Levey as the new CEO of the project as a positive turning point.