If you keep up with the latest crypto news stories, you must have heard that Facebook planned to launch a new competitor of Bitcoin a year and a half back. The project was called “Libra". However, the organization failed to do so because the cryptocurrency made it to a few complications and controversies. Due to this reason, even some of the companies withdrew their names from the project. This included Visa and Mastercard.
Then, Facebook planned to turn Libra into a payment platform, just like PayPal. While that project was still lacking approval from FINMA, it seems like Facebook will finally settle Libra as a stablecoin. Unlike cryptocurrencies, these coins are fixed-value currency. Ever since G20’s Financial Stability Board said that they wanted to regulate stablecoins, these currencies have gained significant popularity.
According to the reports, Libra will launch in January 2021. Plus, its value will be backed by the US dollar. In simple terms, Libra’s worth will change according to the dollar’s fluctuations. The initial launch won’t take place on a global scale. Instead, Facebook has planned to limit Libra only in the US and some Latin American nations, where it will offer a cross-platform payment set-up.
There will also be a digital wallet called Novi. However, only time will tell whether Libra makes it to the big markets or not.