Home » Facebook to launch Libra as a single stablecoin Facebook to launch Libra as a single stablecoin Home » Cryptocurrency » Facebook to launch Libra as a single stablecoin Image Credit: Fortune Facebook’s Libra cryptocurrency could hit the market as early as January 2021.Already faced with mounting legal and administrative hurdles , the coin could hit the scene as a single stablecoin.
This is contrary to an earlier announcement made by the Libra Association, a consortium co-founded by Facebook that Libra will be launched to create multiple digital “stablecoins” of flat currencies including the dollar, euro and the pound sterling.
Per the Financial Times , Facebook is now set to roll out its cryptocurrency as a single stablecoin backed by the dollar.Of course, plans are still underway to create coins based on other fiat currencies, but this is not expected anytime soon.There is no known release date yet, but of course, that will be largely due to how soon the Libra Association is able to get all necessary approvals from regulators.
There is also the possibility that Facebook will launch Novi , its Libra wallet, at the same time as Libra.
Quoting one person familiar with the story per FT , Novi is “ ready from a product perspective .” Novi is designed to allow you to send and receive Libra tokens.The report also adds that you will be able to use Messenger and WhatsApp to manage your Libra balance.
That said, Novi will not be globally available at launch with few countries such as the US, and a few other countries in Latin America ready to be first to have a feel of it.
The choice of these countries is not a coincidence as digital currencies have already gained ground in Latin America.
A year ago, more partners announced their withdrawal from the Libra non-profit; with Visa, MasterCard, eBay, Stripe and Mercado Pago all joining PayPal in pulling out of Facebook’s upcoming Libra currency.
This came as a major blow to Facebook who planned to distribute its cryptocurrency globally initially in 2020.Confirming its pull-out per The Verge , a spokesperson for Visa said: “Visa has decided not to join the Libra Association at this time,” the spokesperson said.“We will continue to evaluate and our ultimate decision will be determined by a number of factors, including the Association’s ability to fully satisfy all requisite regulatory expectations.”
Criticism from different quarters continue to trail the announcement of Libra, and the withdrawal of the aforementioned companies will no doubt have a serious effect on the proposed currency.
That said, it is very unlikely that Facebook would call it quit with its own cryptocurrency; though, it may have to go back to the drawing board.
However, the possibility of having some of these institutions back sometime in the future cannot be completely ruled out if a statement made by Stripe is anything to go by.Stripe in a statement said: “Libra has this potential.We will follow its progress closely and remain open to working with the Libra Association at a later stage.” Author: Ola Ric
Ola Ric is a professional tech writer.He has written and provided tons of published articles for professionals and private individuals.He is also a social commentator and analyst, with relevant experience in the use of social media services.Share This Post On.
