ECONOMY: This virtual Facebook currency will not look like it originally intended
Announced in June 2019, the cryptocurrency imagined by Facebook would finally be ready to be launched, assures the Financial Times. Libra could indeed make its appearance in January 2021, after having faced many obstacles. Unexpected events that had a direct impact on the Facebook project. In the end, the Libra will not quite look like what Mark Zuckerberg’s company announced in 2019.
Originally, Libra was to be launched in the first half of 2020. A launch that ultimately did not happen for various reasons. The desire of Facebook to create a virtual currency based on traditional currencies had not necessarily thrilled regulators and central bankers.
Many experts have indeed objected to the fact that there are several versions of Libra according to national and regional currencies. With its power and resources, Facebook could have upset the established order and therefore threaten the monetary sovereignty of states. Following opposition from regulators, Mark Zuckerberg’s company changed its plans.
An uncertain future
When it is launched – expected in January 2021 in the United States and in some Latin American countries – Libra will take the form of a stablecoin, namely a virtual currency whose value is identical to that of a national currency. In this case, a Libra will be worth a dollar. Facebook is also expected to offer other stablecoins based on other currencies such as the Euro or British Pound in the near future.
Eventually, Mark Zuckerberg’s company could still create a composite currency based on multiple national currencies, but it will take longer. This project may ultimately never see the light of day if Libra does not appeal or if regulators again oppose Facebook’s cryptocurrency.
As a reminder, Libra will allow you to quickly send and receive money via Facebook applications such as Messenger and WhatsApp.