Facebook's Libra cryptocurrency will start operating in January with limited functionality

According to the Financial Times, Libra is a cryptocurrency that Facebook wanted to launch last summer, pegged to fiat currencies, and a multi-currency token will not be launched until January 2021. However, the exact launch date for the dollar-denominated Libra is not yet known and will depend on approval from the Swiss controller Finma.

The social media giant applied for this in May, following changes made in April. Stablecoins, which are pegged to fiat currencies, are designed to avoid the high volatility inherent in other cryptocurrencies such as Bitcoin, making them theoretically more suitable for payments and remittances. However, according to the new plan of the organization, other coins, backed by traditional currencies, as well as combined ones, will be introduced later.

At the same time, in 2020, the American financial regulator refused to issue a permit to the company. It also became known that the Novi crypto wallet, which remains to receive a license in ten more US states, as the product is ready. Novi initially plans to focus exclusively on large-scale remittances and does not intend to serve all regions of the world yet. Representatives of Novi, as well as in the Libra office, did not comment on this. Apparently, these regulator failures caused the functionally limited version of the Libra release.

Source Financial Times


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