The Libra Association, led by Facebook, passed a time without great news. However, now they are close to announcing a new release.
The launch in question is that of its first stablecoin. The news was released by Financial Times on Thursday (26).
Stablecoins start to be produced
According to the report, “three people involved in the initiative” said that stablecoin will be launched in January 2021.
One of the people would have confirmed that the first stablecoin would be backed by the US dollar (USD).
However, stablecoins backed by other currencies are in the Pound plans. The Association also plans to launch single currency-backed tokens and a basket of currencies in the future.
The actual launch date of the dollar-indexed stablecoin still depends on some factors. Libra is based in Switzerland, so you need to obtain a payment service license from local agencies.
This license is granted by the Swiss Financial Market Supervisory Authority (FINMA). Libra applied for the license in April, and people said it could be granted as early as January.
Facebook’s other subsidiary, Novi (formerly Calibra), is also preparing to launch its digital wallet for stablecoins.
The portfolio is “ready from a product standpoint,” a person involved with Novi told the Times, but initially it would not be launched globally. It was not informed in which countries it will be launched first.
Libra undergoes changes to avoid regulators
Libra was announced by Facebook in 2019. Initially, it would be a cryptocurrency backed by a basket of fiat currencies such as the dollar, euro, yen and others.
However, the model has attracted the attention of regulators worldwide. All of them expressed fear and demanded the creation of adequate regulations.
Due to the negative repercussions, Libra made changes to its model. It will now support several stablecoins backed by fiat currencies.
Thus, an expectation was formed in the launch of the first one.
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