Facebook plans to launch Libra in January 2021

Finally, Facebook plans to launch Libra in January 2021 in form of a U.S. dollar-backed digital currency in a limited format.

By · Nov 27, 2020 . 5min read

Facebook plans to launch Libra latest news

Facebook is reportedly preparing to launch its popular project Libra in January 2021. Libra will be launched in a limited format than previously anticipated. In accordance with the report by the Financial Times on Friday, three individuals connected to the project verified that the company might only interpolate a single dollar-pegged stablecoin. Thus, it indicates that it will launch a single token pegged 1:1 to the U.S. Dollar. 

FINMA processes licensing application for Facebook’s Libra

For the uninformed, the Libra project came into existence on 18th June 2019, and the initial plan was to originate a token supported by the basket of global currencies. In 2020, owing to the regulatory concerns, the association dismissed the concept of backing the token with various fiat currencies. FINMA declared in April this year that the regulatory authority has commenced processing the licensing application of the Libra association.

Moreover, the initiative experienced various regulatory repercussions. This was due to the belief of multiple regulators that the envisioned path for the project could threaten financial stability. Hence, owing to the regulatory concerns, the experts state that Libra will initially debut as a single U.S. dollar-backed digital currency.

According to the official website of Libra, leading names like Coinbase, Shopify, Xapo, Spotify, Slow ventures, Checkout.com, and Blockchain capital are part of the association. However, in 2019, Paypal withdrew support for the Libra project. In addition to PayPal, other prominent names also abandoned the project indicating regulatory issues. It includes Visa, Mastercard, Stripe, Mercado Pago, eBay, and Booking Holdings.

Recently, Facebook’s Libra Association appoints Saumya Bhavsar as the General Counsel of Libra Networks. It is enthusiastically appointing new members and strengthening its team with prominent employees, including the recent addition of Saumya Bhavsar. She brings two decades of immense leadership experience in financial services. She specializes in regulatory, legal, and compliance fields.

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