- Facebook-backed cryptocurrency Libra could launch in January
- Libra Association changed course and started working on several single-currency stablecoins
- Stablecoins are cryptocurrencies that don’t fluctuate in value to any currency
- Libra mentioned USD, EUR, GBP, or SGD as base currencies
Facebook-backed cryptocurrency Libra could launch in January. More interestingly, the Libra Association, the consortium created by Facebook, could scale back its ambitions once again.
When it was first unveiled, the Libra cryptocurrency was supposed to be a brand new currency tied to a basket of fiat currencies and securities. Originally, it wouldn’t be based on a single real-world currency, but on a mix of multiple currencies.
Many central banks and regulators have been concerned about this vision. That’s why the Libra Association changed course and started working on several single-currency stablecoins.
What are Stablecoins that Libra is working on?
Stablecoins are cryptocurrencies that don’t fluctuate in value against a specific fiat currency. For instance, one unit of a USD-backed stablecoin is always worth one dollar. Libra mentioned USD, EUR, GBP or SGD as base currencies for its various stablecoins.
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.
When it was first unveiled, the Libra cryptocurrency was supposed to be a brand new currency tied to a basket of fiat currencies and securities. Originally, it wouldn’t be based on a single real-world currency, but on a mix of multiple currencies.
Many central banks and regulators have been concerned about this vision.
What is Facebook’s Libra?
Libra is a blockchain-based payment system proposed by the American social media company Facebook, Inc. The plan also includes a private currency implemented as a cryptocurrency.
The currency and network do not yet exist, and only rudimentary experimental code has been released.The launch is planned to be in 2020.
The project, currency, and transactions are to be managed and cryptographically entrusted to the Libra Association, a membership organization of companies from payment, technology, telecommunication, online marketplace and venture capital, and nonprofits.