Facebook’s Libra to Launch in January 2021, says New Report
According to the latest report, the Libra Association will launch dollar-pegged stablecoin by the start of the next year. But the launch of a stablecoin on the part of Facebook seems difficult as regulators may again create hurdles for the social media giant.
US Dollar Pegged Stablecoin
Financial Times reported on Friday that stablecoin will be launched by January 2021 on the part of the Libra Association. The giant news agency did not mention the exact person but quoted the unknown persons. It has just mentioned the indirect statements of three people involved in the project.
First, the Libra Association was planning to roll out a stablecoin pegged to a basket containing multiple fiat currencies. But due to strict scrutiny and pressure from the US lawmakers, they have decided to launch the only coin backed 1:1 by the US dollar only. According to the report, stablecoins pegged by other fiats will be launched later.
The date for the launch has not been announced yet as it has to be approved by the Swiss Financial Market Supervisory Authority (FINMA). To operate as a payment source, the Libra will have to seek permission from the FINMA.
Both Libra Association and FINMA have not yet revealed any information or detail about the stablecoin project that is backed by the US dollar. In April the regulator received a request for the licensing process, but FINMA declined to reveal information and said,” In accordance with its usual practice, FINMA will neither provide public information on the status of the ongoing procedure nor speculate on when it may be complete.”
The Facebook-led crypto project was launched in 2019 with the support of various financial giants of the world. But the US regulators made a strict regulatory circle around it and pressurized the Association to abandon the project. The major companies, such as Mastercard and PayPal, left the association, which poured a negative effect on the entity. In the start there was a plan that would include several fiat currencies, such as the US dollar, British pound, euro, Singapore dollar, and the Japanese yen for backing a single stablecoin. But after the pressure from regulators and lawmakers, the Libra Association will launch different stablecoins with each pegged to a different fiat currency.
The report also states that some members of the Association consider it goodwill for the project after the appointment of Stuart Levey as a CEO.
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