Facebook’s Libra stablecoin is expected to be launched in January 2021

Cornelia Mascio
Novembre 27, 2020

The association announced that Libra could launch as a series of stablecoins, each pegged to a fiat currency, rather than one multi-currency basket during that revamp.

The exact launch date of Libra is still not known.

Facebook's long-awaited Libra might just see the light of day following reports that the first dollar-backed stablecoin could launch in January 2021. But by seeking to create its own global currency regulators and elected officials around the world became concerned at the prospects of a large social media firm creating a currency that would compete against fiat currency like the dollar or euro - not to mention the potential for systemic risk.

The Libra Association, which manages Facebook's cryptocurrency project, will launch a single coin backed by one dollar as early as January, The Financial Times reported on Friday. FINMA, the Swiss regulator, did not elaborate beyond a statement in April confirming receipt of Libra's application for a payments licence.

Due to the regulatory uncertainties around the token, it will be no longer debuted as a global stablecoin.

The move would represent an even greater reduction in the project's ambitions than that proposed in April in response to a regulatory and political backlash against the project.

In order to pacify regulators, the Libra consortium chose to amend its original whitepaper.

The digital currency will be very different from what was envisaged initially. Another change was made in May when Libra's digital wallet was rebranded from Calibra to Novi.

The Libra Association earlier applied for a payments system license from FINMA in September 2019. According to FT's report, the coin based on United States dollar will be launched first, and the other coins along with the composite coin will be rolled out at a later point. The FT article also stated that Facebook's wallet Novi (formerly Calibra) had already secured licenses in numerous US states but awaits as many as ten, including a New York Bitlicense.

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