In January, Facebook is going to release its digital currency project, Libra. Its value will be supported by the US dollar. As per some reports from the Financial Times, Facebook wanted to launch a cryptocurrency similar to Bitcoin a year and a half ago. However, few conglomerates such as Visa and Mastercard withdrew from the project. They forwarded the concerns expressed by some banks and financial institutions as well as the European Union. In April last year, The Libra Association brought changes that made Libra more of a PayPal-type payment system.
Still, the project is waiting for approval from FINMA (the Swiss-based Financial Market Supervisory Authority). Now, it seems that it won’t be payments system launched in January 2021. However, it will be a stablecoin. As its value is constant, a stablecoin is a virtual currency much less volatile than cryptocurrencies such as Bitcoin. The US dollar will support it. Hence, a Libra would be equivalent to a dollar. This means its value will depend on the worth of dollar.
The unveiling would happen only in the United States and in few Latin American nations. As per some sources, the aim is to sue the currency to provide a cross-platform payment system. As compared to the volatility of a cryptocurrency, it is easier for stablecoin to get approved. The project would also consist of the digital wallet Novi (previously called Calibra). From this, stablecoins could be acquired and operated, for example, on WhatsApp and Messenger. This is in a way that lets the sending, reception and administration of the new cryptocurrency.