FT reports Libra plans Jan 21 launch of dollar stablecoin

Libra Facebook’s Cryptocurrency to Launch Year in Limited Version

According to reports, the much-anticipated Libra currency might launch as soon as January 2021, but in a more reduced capacity than the original ambitious model. In June 2019, the project proposed that Libra might be pegged to a basket composed of multiple fiat currencies.

Facebook Libra may be launched by January next year, according to people familiar with the matter. The developer of a digital wallet designed for Libra digital currencies explained that the wallets were ready but for limited users.

This is probably why the The Libra Association, a Geneva, Switzerland-based non-profit founded by Facebook and several other companies, has made a decision to pare down its ambitions when it comes to Libra.

All these changes have changed the shape of the project, only the painting is same.

The Libra Association, of which Facebook is one of the 27 members, seeking the green light from Swiss market surveillance to issue a series of stablecoins backed by individual traditional currencies, as well as a token based on the stablecoins indexed to the currency.

The group also said it no longer intends to move to a fully permissionless system over which no single authority has control, while maintaining the "key economic properties" of a permissionless system. The Geneva-based Libra Association, which will issue and govern Libra, plans to launch a single dollar-backed digital coin, the FT said, citing one of the people.

The Libra Association would launch other currencies and a "digital composite" of all of its coins at a later date.

Libra Association, as a response to the criticism, later downgraded their grand plan. Rather than launching as a multi-currency stablecoin, the upcoming Facebook Libra will be reportedly backed to the United States dollar, while support for other fiat currency will be introduced at a later date.

This followed the appointment of former HSBC European head James Emmett as MD of Libra Networks, as well as Sterling Daines as Chief Compliance Officer.



Other news