Facebook is on course to launch its own cryptocurrency Facebook Libra and promote its debut in the early months of 2021. This digital token of the largest social media network in the world can come out as soon as January, but in its scaled-back form, according to Financial Times.
Facebook Libra Cryptocurrency
The Libra Association which is Geneva-based has the role of issuing this stablecoin. It will also launch the single coin(digital) which will be backed one-for-one in comparison to the dollar instead of the multi-currency coins. This was reported by three sources to the publication.
The moves resemble a crucial cutback in their project’s ambitions and how it chooses to arrive. Following this move, the company has received some significant political backlash. Central banks and regulators across the world are raising concerns about how it has the potential to upset mainstream power in comparison to money and how it could erode the financial stability of some countries.
Stablecoins have one advantage in this aspect. These coins are designed for avoiding the volatility that cryptocurrencies like bitcoin possess. So, in theory, these types of cryptocurrencies like Facebook Libra are more appropriate for money transfers and payments.
Facebook is currently one out of the 27 members of the Libra Association. Facebook is currently asking for the go-ahead for issuing a set of stablecoins to form market watchdogs of Switzerland. This series of cryptocurrencies will be backed by the traditional currencies and also it will act as a digital token which will be based on stablecoins, that are currency-pegged.
Unique Features Of Facebook’s New Cryptocurrency
Facebook has first announced its plan to create the company’s first cryptocurrency way back in June of the year 2017. It gave this promise of making digital money far more attractive to users who are active every day. They decided to link these coins to assets, hard mostly, which also includes short-term securities released by the Government. Consumers would have the capacity to utilize these e-coins for purchasing items of everyday use and any items across the world. They can also go for sending money to family and friends without having to attach their identity to the transaction. Facebook made the above statements at that time.
Libra’s debut comes at a time when the most popular of all cryptocurrencies, Bitcoin is rallying for the very first time above $19,000 since the year 2017. Bitcoin is trading currently over $16,900.