Facebook has planned to launch Libra in January 2021. The world’s most popular social media giant is launching a digital currency. Libra, which is a Geneva-based Association, governs and issues Libra plans for a single digital coin backed by the dollar.
A news publication on Ambcrypto, Facebook is planning to launch Libra, a single digital coin supported by the dollar. Reports claimed that 3 individuals who are part of the project had revealed the details of the Libra.
Previously the launching was stalled because of the strict market regulations. Market regulators felt that releasing this kind of digital coin will cause scams and problems.
Facebook’s CEO, Mark Zuckerberg, introduced the project in 2019 only to be met with intense market regulator’s skepticism. Besides, Zuckerberg had to testify before U.S. Congress members on Libra.
World24 had tweeted this recently about the new development on Libra.
The appointment of HSBC legal chief Stuart Levey, who is a former George W Bush-era terrorism finance expert, in May, proved to be a turning point. The project took a turn for the best under him, highlighting that Libra Association is serious about the security flaws.
The main challenge already faced by Libra is being able to convince market regulators to support them. Though prominent names like Coinbase, Spotify, Xapo, Shopify, Checkout.com, and Blockchain capital are part of it, major names like Visa, Mastercard have pulled out.
According to a news article on Businesstoday Facebook’s Libra cryptocurrency plan to launch a single digital coin that is backed by the dollar is happening. Though the project was revealed last year, it was not met with enthusiasm.
However, they have trimmed after regulators and central banks raised their concerns on the erosion of mainstream power and financial stability. Facebook is part of the Libra Association of 27 members.
They plan on issuing series of stablecoins that are ably supported by traditional currencies, which are token-based. It also comes with other coins backed by traditional currencies, and the composite can be introduced to a later date.
This would seem interesting now because Libra is streamlining its plan, and one may want to view the effects on the market. Regulators are not fully convinced about them being able to pull this off, with PayPal withdrawing support of cryptocurrencies.