Libra launch will occur after numerous problems faced by Facebook
Facebook’s Libra cryptocurrency is ready to launch in January, with the specific day yet to be determined, according to reported the Financial Times on Friday, citing three unidentified people involved in the project.
The Geneva-based Libra Association, which will issue and govern Libra, plans to launch a single dollar-backed digital currency, the FT said, citing one of the people. The move would represent an even greater reduction in the project’s ambitions than the April proposal in response to a regulatory and political reaction against the project.
Libra, revealed by Facebook Inc last year, was relaunched in a simplified way after regulators and central banks around the world raised concerns that it could disrupt financial stability and erode the dominant power over money.
The Libra Association, of which Facebook is one of 27 members, is seeking the go-ahead for the watchdog of Swiss markets to issue a series of stablecoins backed by individual traditional currencies, as well as a token based on stablecoins indexed to the currency.
However, under the agency’s new plan, other currencies backed by traditional currencies would be introduced at a later date, the FT said. The Libra Association did not immediately respond to a request for comment from the Financual Times.
FINMA, the Swiss regulator, did not elaborate beyond a declaration in April, confirming receipt of Libra’s order for a payment license. Stablecoins are designed to avoid the typical volatility of cryptocurrencies like Bitcoin, making them, in theory, more suitable for payments and money transfers.
Source: Deccan Herald