Facebook to Reportedly Roll Out Libra Dollar-Backed Stablecoin in January 2021
Facebook’s long-awaited Libra might just see the light of day following reports that the first dollar-backed stablecoin could launch in January 2021. However, the launch date would be determined by an approval from the Swiss financial regulator.
A Downgraded Libra Stablecoin to Launch in Early Q1 2021
According to the Financial Times on November 27, 2020, the Menlo Park-based social media giant Facebook is reportedly gearing up to launch its Libra stablecoin in early Q1 2021. Sources familiar with the matter put the exact timeframe of the launch date to January 2021.
Meanwhile, the report notes that the early 2021 launch will see the initial roll out of a dollar-pegged stablecoin, which is a downgraded version, as against the original announcement of a token pegged to a basket of fiat currencies. Also, the proposed launch date is not certain, as it is dependent on the greenlight given Switzerland’s financial watchdog, Financial Market Supervisory Authority (FINMA).
When Facebook first released the Libra whitepaper back in June 2019, governments and regulators globally were put on edge. The Libra Association faced several hearings, while European regulators stated that the Libra could threaten sovereign monetary policies globally.
In order to pacify regulators, the Libra consortium decided to amend its original whitepaper. As reported by BTCManager back in April, the altered model included the introduction of several stablecoins pegged to different fiat currencies. Another change was made in May when Libra’s digital wallet was rebranded from Calibra to Novi.
The Libra Association earlier applied for a payments system license from FINMA in September 2019. While waiting for An approval from the Swiss regulator to launch the dollar-backed stablecoin, the FT report stated that other fiat-pegged stablecoins could roll out at a later date.
Meanwhile, the Novi wallet, according to the report, would see initial use across six high-volume remittance corridors, including the U.S and some countries in Latin America. Although Facebook has received licenses from regulators in different U.S. states, there are pending licenses from 10 state regulators, including a New York BitLicense.