Facebook Libra’s Cryptocurrency will be Launched in Early January
According to a report by the Financial Times, the Geneva-based Libera Association intends to launch a digital currency linked to the dollar. This is another significant reduction in Facebook’s plan to issue a series of digital currencies, which has received political criticism and regulatory concerns.
Libra, the crypto currency that Facebook is developing, will be launched according to plans in early January, the Financial Times reports based on people involved in the issue who have asked to remain anonymous.
According to one source, the Libra Association, which is based in Geneva and whose role is to issue and manage the currency, intends to launch a digital currency linked to the dollar. The move represented another significant reduction in the original ambitious plans.
Facebook unveiled plans for the Libra currency last year, but changed it to a more limited version after regulators and central banks around the world expressed concerns that the currency would undermine financial stability and hurt central institutions’ powers to monitor money.
According to the report, the Libera Association, of which Facebook is one of the 27 companies, intended to ask the green light from the Swiss capital market regulator to issue a series of stable digital coins (stablecoins) linked to traditional currencies, as well as a token based on stable currencies linked to regular currencies.
However, under the current plan, other coins linked to traditional coins as well as the token will be launched only at a later stage.
Libera did not respond to a request for comment.
The Swiss regulator (FINMA) reiterated its statement from April in which it confirmed that Libra had applied for a license as a means of payment. Stable currencies are designed to avoid the volatility that is most common in digital currencies like Bitcoin, so in theory they are more suitable for payments and money transfers.
Facebook Libra's Cryptocurrency will be Launched in Early January - /10