Facebook-backed cryptocurrency controversial could launch as early as January, as report by the Financial Times.
Libra is a permissioned blockchain-based payment system proposed by the American social media company Facebook, Inc. The plan also includes a private currency implemented as a cryptocurrency.
According to TechCrunch, stablecoins are cryptocurrencies that don’t fluctuate in value against the real-world money they’re based on. In that way, a single stablecoin backed by the dollar is always worth one dollar. The Libra Association had also planned to create a composite of all of its tokens. The group came out with this plan after regulators expressed concerns over its original intention to create a cryptocurrency based on a basket of real-world currencies.
According to the Financial Times, the Libra Association now plans to launch a single dollar-backed coin. It’ll compete directly with other stablecoins, such as USDC, PAX and Tether (USDT). The Libra Association still plans to roll out other currencies, but it’ll happen at a later time.
Facebook will most likely launch its own Libra wallet at the same time. Originally called Calibra, the Facebook subsidiary has been rebranded to Novi back in May.
In addition to a standalone app that will let you send and receive Libra tokens, you’ll be able to manage your Novi account from Messenger and WhatsApp. Facebook expects people to start using Novi for remittance purposes and peer-to-peer payments.
It’s unclear whether other members of the Libra Association also plan to launch their own Libra-based service at the same time. Members include Farfetch, Lyft, Shopify, Spotify and Uber.
