Recently it had become quiet around Facebook Libra, the large-scale project of a new, stable crypto currency. Now the Financial Times reports that Facebook Libra is set to launch in January, albeit initially with some restrictions.
When rumors about Facebook Libra turned into an official presentation of the project in the summer of 2019, the reactions were quick and fierce. Monetary authorities worldwide rumbled against the plans of a private consortium led by Facebook to establish its own crypto-currency, Libra. Fear of undermining the state currency monopolies led to threats of far-reaching regulation of Facebook Libra. But despite all the theatrical thunder, Facebook Libra is now ready for launch in January 2021, writes the Financial Times. Referring to three people familiar with the project, the paper reports that Facebook Libra will initially start as a 1:1 Stablecoin pegged to the US dollar, with the US and Latin America as its first targets.
News about Facebook Libra not yet confirmed
According to the Financial Times, the exact launch date for Facebook Libra depends on the Swiss Financial Market Supervisory Authority (Finma), which is the Swiss supervisory authority at the consortium’s registration office. Finma did not comment on the status of the registration process. Facebook Libra also did not deny or confirm the approval. The newspaper refers to the new head of the consortium, Stuart Levey , who is responsible for speed. Levy has a background as a lawyer for major banks as well as in politics, including as U.S. vice secretary for the fight against terrorism and its financing. This experience could help dispel concerns of Finma and other authorities.
Meanwhile, the Wallet Novi developed for Facebook Libra is also ready for use, according to the Financial Times. When Novi is set up, users will be subject to an identity check (KYC), a crucial element in convincing tax authorities of the legality of Facebook Libra.
Start phase of Facebook Libra and what comes next?
In April 2020, Facebook Libra had partially changed its original concept and had moved away from linking the Altcoin to a basket of currencies. Instead, several Facebook Libra are to be created that are linked to regional reserve currencies and thus more reminiscent of CBDCs. According to the report, only part of the plans have been fulfilled with the Libra pegged to the US dollar, and further Facebook Libras are likely to follow. There are apparently still difficulties with the approval of Wallet Novi in individual U.S. states, each of which must give its green light.
Conclusion: slimmed down Facebook Libra – better than nothing?
The crypto scene is following the developments around Facebook Libra with great interest, because they hope for impulses for the entire crypto industry. Once citizens are familiar with the concept of digital currencies and corresponding wallets, they can also invest in Bitcoin and Co. But this optimism is still to be proven in practice: Will Facebook Libra even find the broad acceptance it needs to be successful? Or has the image already suffered to such an extent that the broad mass of Facebook users are turning a blind eye to the new coin? Facebook Libra remains an exciting experiment for the moment.
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