facebook inc. is preparing to launch in a limited format the libra cryptocurrency in january 2021, according to financial times, citing three sources involved in the project.
facebook unveiled a plan to launch a cryptocurrency dubbed libra in june 2019. according to the original plan, users of the new currency would be able to pay with it by making purchases on facebook and on sites on the internet, as well as transferring currency to each other.
it was assumed that the cryptocurrency will belong to the "stablecoin" category (stablecoin is the common name for cryptocurrencies that are backed by national currencies and assets), then options for pegging to several currencies were considered. however, there are now plans to issue one "stablecoin" backed by the us dollar at a one-to-one ratio, writes ft.
since its announcement, the project has come under close scrutiny and criticism from legislators and regulators. regulators feared that libra could be misused for criminal purposes without proper supervision.
in this regard, the company promised to slow down the project until it receives regulatory approval in both the us and europe.
now, according to the publication, facebook is awaiting the decision of the swiss financial regulator to issue a cryptocurrency.
