The Facebook stablecoin project Libra might get off the ground as early as January 2021

As reported by the Financial Times (FT), the Libra stablecoin project is likely to be launched soon, in January 2021. In which Libra will launch a single dollar-pegged stablecoin next year.

The Facebook stablecoin project Libra might get off the ground as early as January 2021

Facebook announced its Libra project in June 2019, announcing its vision for the global stablecoin. It immediately met with backlash from lawmakers worldwide, who have cited concerns about Libra’s potential financial stability or allowing money laundering.

Libra was initially proposed to be attached to a basket of various fiat types but was rejected by project leaders in April due to regulatory pressure from lawmakers in the United States and internationally. The project leaders have announced that Libra could launch as a series of stablecoins, each tied to a fiat type, instead of a multi-currency basket during that revamp.

Now, Libra will launch as a single 1: 1 backed coin in US dollars and is awaiting approval by the Swiss financial regulator FINMA. Other currencies in the basket and aggregate can still be launched at a later date.

Despite its limited form, like a 1: 1 exchange rate with US dollars may appease policymakers, the project still faces a tough battle as regulators seek to restrain the digital payments industry and require senders and receivers to account for their transactions.

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