According to the Financial Times report, the long-awaited stablecoin Libra could finally see the light of day as soon as January 2021. After facing scrutiny from global financial regulators for more than a year, Libra will finally launch in the form of a United States dollar-backed digital currency. Citing three people involved in the Libra project, the Financial Times reported that the Libra Association plans will eventually add more fiat currencies to the basket of assets that would back Libra’s value.
Libra Association is yet to receive regulatory approval from Finma.
The exact launch date of Libra is still not known. It would depend on when the Libra Association receives regulatory approval by the Swiss Financial Market Supervisory Authority, or FINMA, to operate as a payments service. However, the launch is expected to happen in January next year. Facebook announced its plans to launch a stablecoin last year, but it was relaunched in slimmed-down form after regulators and central banks across countries raised concerns it could upset financial stability and erode mainstream power over money. Facebook changed Libra’s white paper to please the regulators.
Libra Association is seeking the go-ahead from Switzerland’s markets watchdog to issue a series of stablecoins backed by individual traditional currencies.
Facebook continues to face regulatory pushback over Libra.
The social media giant Facebook has faced regulatory pushback from around the world over its stablecoin project Libra that it announced last year. Several regulators and lawmakers around the world argued that Facebook launching a private digital currency would risk the financial sovereignty of nations. Due to the regulatory pushback, several companies pulled out from the Libra Association. Facebook CEO Mark Zuckerberg had to answer US lawmakers about the Libra stablecoin. However, Libra Association is going ahead with the project, and a trimmed-down version of the stablecoin is expected to be launched in January 2021.