Facebook’s Stablecoin Project Is Dated For Libra
Facebook’s dollar-backed Libra stablecoin project could launch in January 2021, according to a report released by the Financial Times on Friday.
Facebook’s stablecoin Libra, which has consistently been criticized by regulators, was originally proposed to be fixed to a basket of multiple fiat currencies. However, as a result of pressure from regulators in the US and abroad, this proposal was turned down by the project leaders in April.
The project leaders later announced that Libra could be launched as a set of stablecoins, each fixed to one fiat currency, rather than a multi-currency basket. Libra will now be launched as a single asset backed 1: 1 with the US dollar pending approval by the Swiss financial regulator FINMA, according to the FT. Other currencies in the basket and composite may be introduced later, according to FT, which does not name its sources.
Libra’s Challenging Process
Facebook announced the Libra project, which announced its global vision of stablecoin in June 2019. The project has faced backlash from regulators around the world due to concerns about its potential to threaten financial stability or enable money laundering.
The social media giant helped establish Libra Association, which was the board of the project that year. It now has 27 members.
The limited form of the project has relatively calmed the regulators. But regulators continue to squeeze the digital payment industry and hold senders and receivers responsible for their transactions.