Libra, the cryptocurrency developed by Facebook, will finally be launched in January 2021. Under pressure from financial regulators, the social network agreed to revise its ambitions down. 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 book that allows information to be stored in an unchanging and inviolable way. Surprisingly, Facebook uses its cryptocurrency to pay online through its own apps, Messenger, WhatsApp and Instagram.
Soon, financial regulators and the authorities opposed the deployment of Libra. The US Congress has asked the California social network to immediately stop its development. For its part, France was quick to announce its intention to impose a very strict framework on virtual currency. To deal with the influx of criticism, Facebook immediately handed over the management of Libra to the Libra Association, a large consortium of financial partners.
Stable Bitcoin supported only by the US dollar
Despite the hostility shown by the authorities, Facebook would launch Libra in January 2021, our colleagues from the Financial Times report. However, the project would have changed a lot since its announcement in June 2019. To escape the regulators, the cryptocurrency would have been reviewed. In the words of “three people involved in the project», Facebook will finally be pleased to offer stabitcoin, a cryptocurrency whose price is more stable and less volatile, supported by the US dollar in a 1: 1 ratio.
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At first, Mark Zuckerberg, CEO and founder of Facebook, still wished lean scales against a mixture of several currencies : dollar, euro, pound, yen and singapore dollar. After all, it will be just a digital dollar offered to all Internet users around the world. With this Libra-examined Libra, the United States is trying to expand the hegemony of the king dollar abroad, at the risk of competing with fiat currencies such as the euro or the ruby. Libra could also establish itself as a direct competitor to the digital yuan, the digital currency of the central bank developed by China.