The Financial Times, a prominent financial news outlet, sent out a report on Friday. This report stated that Facebook is making plans to launch the Libra Project, an ambitious stablecoin project, in January of 2021. It should be noted, however, that this project will launch in a far more limited format than what was originally planned.
Launching In Limited Fashion
As the report stipulated, the Financial Times had three people confirm that the Libra project should only just introduce a singular stablecoin pegged to the USD. These individuals are associated with the project itself, meaning that the project will only launch a 1:1 USD-backed cryptocurrency. As it stands now, the project is still waiting for approval from the Swiss Financial Market Authority, or FINMA.
It was back on the 18th of June, 2019, when the Libra Project was first announced. During that time until now, the project had seen a massive shift. At first, it would be a singular token, backed by a basket of global currencies, but this was forced to be changed thanks to the scrutiny and regulatory pressures.
As a result, the Libra Association was forced to scrap the fiat currency basket idea, instead, issuing out a number of stablecoins, each connected to a singular currency alongside it.
It was back in April this year when FINMA had announced that it was processing the licensing application for the Libra Association. In the announcement, FINMA detailed the considerable differences between the originally-submitted project and the project it transformed into, citing the new single-fiat stablecoins and the Libra payment token still operating alongside this.
FINMA stated that a thorough analysis of the application would take place, imposing extra requirements for services that are added and pose greater risk.
Facebook’s ambitious project has seen a rather impressive amount of backlash across the world, especially in the early days of its announcement. Both Australian and European authorities issued out warnings for potential scams through the use of its name, and many firms had pulled out of the Libra Association due to the monumental amounts of scrutiny experienced by it.
Even so, the Association started to gain ground, and prominent names in the Association include Xapo, Coinbase, Spotify, Shopify, Checkout.com, Slow Ventures, as well as Blockchain Capital.
Big Names Pulling Out
As for the firms that pulled out of it, big names like Visa, PayPal, Stripe, Mastercard, eBay, Mercado Pago, and Booking Holdings were all once part of the Libra Association. However, it seems that these companies are working towards going into crypto themselves, as PayPal is already planning crypto services next year.