Social-Media
Facebook’s Digital Currency : Libra could launch in January 2021
According to the Financial Times report, the Facebook-backed cryptocurrency Libra may be released in January. More importantly, the Libra Association, a consortium set up by Facebook, has once again been able to dial down its ambitions.
When it was first unveiled, the Libra cryptocurrency was expected to be a brand-new currency attached to a basket of fiat currencies and securities. Originally, it will not be based on a single real world currency, but on a combination of various currencies.
Many central banks and regulators were worried about this vision. That's why the Libra Association reversed direction and began working on a variety of single-currency stablecoins.
Stablecoins are cryptocurrencies that may not fluctuate in value against a single fiat currency. For eg, one unit of a USD-backed stablecoin is often worth one dollar. Libra applied to USD, EUR, GBP or SGD as the fundamental currencies of its different stablecoins.
Owing to the Financial Times, the Libra Association is now planning to issue a single dollar-backed coin. It can compete directly with other stablecoins, such as USDC, PAX and Tether (USDT). The Libra Association is also planning to roll out other currencies, but this will come later.
Facebook is most likely to announce its own Libra wallet at the same time. Originally renamed Calibra, the Facebook subsidiary was rebranded back as Novi in May.
In addition to a standalone app that lets you send and receive Libra tokens, you'll be able to control your Novi account from Messenger and WhatsApp. Facebook wants users to start using Novi for remittances and peer-to-peer transfers.
It is not known if other members of the Libra Alliance are still preparing to start their own Libra-based service at the same time. It includes Farfetch, Lyft, Shopify, Spotify and Uber.
