After facing lengthy backlash from regulators worldwide, a pared-down version of Facebook’s Libra project will finally launch in January 2021. 

Zuckerberg’s Libra Takes Flight

According to the initial white paper, Libra Coin was described as a coin pegged to a composite of multiple fiat currencies: US Dollar (USD), Euro (EUR), British Pound (GBP), Singapore dollar (SGD). 

The idea of multi-currency stablecoin did not sit well with the regulators, who vehemently opposed the project, calling it a threat to global financial security. 

Conceding to regulators, the team renewed its whitepaper by adding stablecoins denominated in single fiat currencies. According to a report from Financial Times, the January Libra launch consists of a stablecoin pegged 1:1 to the US dollar (USD).

Independent crypto journalist, David Gerard, told Crypto Briefing:

“This is even more cut down than the Libra 2.0 plan from April. So, this is basically Paypal-but-by-Facebook, with US dollars. But if they still do it as crypto-coins backed by a reserve, there’s the same issues with the size of the reserve, if it’s at Facebook scale.”

Libra’s USD-pegged stablecoin is the first of what will soon be many single fiat-based coins to be launched in the future. 

Facebook will be the first large technology company to issue USD-based stablecoin. Besides Facebook, many cryptocurrency exchanges and financial companies have issued USD-based stablecoins in the past. 

The social media giant introduced the project in June 2019 and outlined its vision for a global multi-currency Libra Coin (≋LBR) for its 2.7 billion users. 

The project is governed by the Libra Association, a consortium of private companies led by Facebook and headquartered in Switzerland. 

The team has not yet confirmed the roll-out of the USD stablecoin. The Swiss financial regulator, FINMA, has approved the launch.