Facebook’s digital currency, Libra, is reportedly ready to launch in January 2021.Quoting from Reuters on Friday (27/11/2020), the Financial Times reported, the Geneva-based Association that publishes and regulates Libra plans to launch a digital coin.
There are three Financial Times sources joined the project. The move will represent a larger scale than the initial planned digital money project proposed in April.
Libra is released in a slimmer form
Libra, launched by Facebook last year, is relaunching in a slimmer form. It comes after regulators and central banks around the world raised some concerns. Namely Libra could destabilize financial stability and erode the power of the real money mainstream.
The Libra Association, of which Facebook is one of 27 members, is seeking approval from the Swiss market watchdog to issue a series of stablecoins backed by individual traditional currencies. They will also issue tokens based on stablecoins that are pegged to the currency.
FINMA, the Swiss regulator, did not elaborate on more than a statement in April confirming acceptance of Libra’s application for a payment license.
The function of stablecoins is to avoid the volatility that is typical of currencies such as bitcoin. This makes it in theory more suitable for payments and money transfers.