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Facebook’s Libra: USD-Backed Crypto to Launch in Jan 2021

Facebook’s Libra USD-Backed Crypto to Launch in Jan 2021
  • Facebook’s Libra cryptocurrency prepares to launch in January as a single digital coin.
  • The exact timing of Libra’s launch depends on when it receives regulatory approval.

Facebook’s Libra currency is set to launch as a single coin backed one-for-one by the dollar in January 2021. Notably, Facebook plans to roll out other currencies and the digital composite later.

Currently, the Libra Association is waiting to receive regulatory approval to operate as a payment service. The approval is pending from the Swiss Financial Market Supervisory Authority (Finma).

LINK Libra revised whitepaper explains that the Libra network includes single-currency stablecoins in addition to ≋LBR. Some of the currencies in the proposed libra basket, include (librausd or ≋USD, libraeur or ≋EUR, libragbp or ≋GBP, librasgd or ≋SGD).

However, the Libra Association received a regulatory and political backlash against the proposed project. Global regulators warn that it could threaten monetary stability and become a hotbed for money laundering.

Moreover, it can erode user privacy. Therefore, the 27-member Libra Association says it’s getting ready to launch Facebook’s Libra cryptocurrency in a limited format in 2021.

Libra Association, which manages Facebook’s cryptocurrency project, plans to launch a single coin backed by the dollar.

Libra’s exact launch date would depend on when the project receives approval to operate as a payments service. The Swiss Financial Market Supervisory has not shared the approval status update as of yet. Unlike Bitcoin, which is free from external control, Libra falls under the oversight of the Libra Association.

In contrast, critics are complaining that a move to single coins could affect users looking to convert currencies. This means additional costs when converting. Following then, it undermines its ambition to enable greater financial inclusion.

A number of Libra’s founding members including PayPal, Mastercard, Vodafone, and eBay, quit the project in late 2019 and early 2020.  Even more, the members distanced themselves from the controversial project.

Read Also: Facebook’s Stablecoin Libra Must Be Regulated to Gain G7’s Support

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