Libra, the cryptocurrency developed by Facebook, would finally be launched during the month of January 2021. Under pressure from financial regulators, the social network has agreed to revise its ambitions downwards. Backed by dollars, the currency will allow Messenger and Whatsapp users to make online payments.
Remember: in June 2019, Facebook announced the arrival of Libra, a cryptocurrency independent of states and banks. Like Bitcoin or Ether, Libra is based on Blockchain technology, a decentralized ledger allowing information to be stored in an immutable and inviolable way. Unsurprisingly, Facebook uses its cryptocurrency for online payments through its own applications, Messenger, WhatsApp and Instagram.
Soon, financial regulators and authorities opposed the deployment of Libra. The US Congress has asked the Californian social network to immediately stop its development. For its part, France quickly announced its intention to impose a very strict framework on virtual currency. To manage the influx of criticism, Facebook promptly handed over the management of Libra to the Libra Association, a large consortium of financial partners.
A stablecoin only backed by the US dollar
Despite the hostility displayed by the authorities, Facebook would launch Libra in January 2021, report our colleagues from the Financial Times. Nevertheless, the project would have changed a lot since the announcement in June 2019. To escape the regulators, the cryptocurrency would have been revisited. According to the words of “three people involved in the project», Facebook will finally be content to offer a stablecoin, a cryptocurrency whose price is more stable and less volatile, backed by the US dollar in a proportion of 1: 1.
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At the beginning, Mark Zuckerberg, CEO and founder of Facebook, nevertheless wanted lean Libra against a medley of several currencies : dollar, euro, pound sterling, yen and Singaporean dollar. Ultimately, it will only be a digital dollar offered to all Internet users around the world. With this Libra revisited in cryptodollar, the United States seeks to extend the hegemony of the king dollar abroad, at the risk of competing with fiat currencies such as the Euro or the ruble. Likewise, Libra could establish itself as a direct competitor of the digital yuan, the central bank digital currency developed by China.