A lot of companies are creating and sharing their own cryptocurrency projects, with Facebook being at the forefront. Their new currency is named Libra and it’s set to launch in January 2021. Apparently the digital currency named Libra will be backed by the dollar, according to the Financial times. It’s basically a scaled back version of the initial project. The Libra project had both a political and regulatory backlash against it, so the changes are here to reflect all of that.
Many people in the industry were worried that this currency would lead to a lack of financial stability. There would also be a lot of issues like eroding the mainstream power this would have over money. It was a very demanding and challenging project, and the changes are reflecting that. Financial Times states that other coins backed by traditional currencies are set to launch in the near future. So Libra is definitely not alone here.
Right now, the Libra Association is trying to receive the greenlight from the Swiss market watchdog in order to create and send a stablecoin series. The stablecoins are created from the ground up to avoid the volatility that would appear on the market from regular crypto. This makes them more suitable for financial transfers and payments. It will come with some trial and error, but the benefits are clearly there, and in the end it does make a huge difference.
As a result, Libra will compete with other stablecoins on the market right now. The fact that Facebook also wants to release other cryptocurrencies is interesting, and it shows that yes, the company is invested in the future. That being said, it might take a little bit of time to handle and tackle all these things appropriately. In the end, it’s easy to see that Libra is just the starting point for the Facebook cryptocurrency ecosystem. It’s an interesting approach for them, since they are testing the market to see how it will grow and expand, while also figuring out how things will change and expand in the long run.
Aside from having an app that will allow you to manage, receive and send Libra tokens, you can also use WhatsApp and Messenger to manage the Novi account. Facebook is expecting customers to use Novi for peer to peer payments and also for remittance purposes, which is something to take into consideration. Since Facebook is a part of the Libra association with 28 other entities, it’s hard to know if the other members will create their own cryptocurrency projects. The companies included in the core Libra associations are Uber, Spotify, Shopify as well as Lyft and Farfetch, among many others.
It’s interesting to see the way Facebook is handling this, and Libra can still have a lot of success. The fact that they suffered some backlash clearly shows there’s room for improvement. Making Libra a stablecoin is the right approach considering what happened, and a lot of people are still excited to see it launch in early 2021. Whether the January 2021 deadline will stick or not, we’ll see this very soon!