Facebook’s Libra cryptocurrency project has been on the target of regulators since it was proposed by the social media giant back in the year 2019. It has faced regulatory issues throughout this time. Due to these regulatory issues, the Libra Association has not been able to roll out this cryptocurrency so far. However, now reports have started circulating in the community that the launch of this much-awaited digital currency might occur at the beginning of the next year.
As reported by Financial Times (FT) on November 27, Facebook’s Libra Association is expected to roll out the first stablecoin in the first quarter of the next year. As per sources close to the matter, the social media giant may launch Libra’s first stablecoin in the month of January. In a bid to show compliance with regulatory scrutiny, the Association will only be launching one fiat currency-backed stablecoin.
Libra will be launched in a series of stablecoins. Each of the stablecoin will be backed by a new fiat currency, as the leaders of the project revealed back in the month of April. Firstly, the plan was to launch a stablecoin backed by a basket consisted of multiple fiat currencies. Now, Libra is being launched as a US Dollar USD-pegged stablecoin by 2021, as stated in the report of Financial Times. However, the Libra Association plans to launch more fiat currencies-pegged stablecoins later in the year 2021 as soon as it goes through regulatory compliances thoroughly, the report stated.
This so-called “scaled-down version” of Libra still needs approval from the financial regulatory authority of Switzerland the Swiss Financial Market Supervisory Authority (FINMA). As soon as the regulatory approval is granted, the Libra Association will start making preparations for the launch of the USD-pegged stablecoin.
Facebook’s Libra has been under the scrutiny of financial regulatory authorities from across the whole world. The social media giant initially planned to launch Libra cryptocurrency in the mid of year 2020. However, the regulatory uncertainty revolving around this stablecoin project led regulatory authorities and lawmakers to increase their pressure on the Libra Association. As a result, the association had to abandon the launch of this digital currency at that time.
What’s more, major financial firms MasterCard and the online payment giant PayPal which were initially the members of Libra Association left the project due to these regulatory concerns.