EDITOR NOTE: The long awaited Libra--Facebook’s dollar-backed cryptocurrency that started the race toward sovereign digital currency creation--will finally see its limited launch date early 2021. Libra isn’t the first fiat-backed digital currency, though its efficiency and widespread adoption may rival peer Stablecoins; that is, until the Fed actually gets to issuing its own digital coin. It goes without saying, the problem with fiat-backed Stablecoins is, ironically, its “stability”--not in terms of volatility but in value. As the US dollar continues to sink, so too will any digital coin pegged to it.
Libra, a new cryptocurrency being created by Facebook and others, could launch as soon as January but in a limited format, according to a report from The Financial Times, which cited sources familiar with the matter.
The Libra Association, which has 27 members including Facebook, was planning to launch digital versions of several traditional currencies. But now it is reportedly only planning to launch a single coin backed by the dollar.
The scaling back of the project, which was started by a group of Facebook executives, comes after global regulators warned an influx of new libra coins could threaten monetary stability. Facebook did not immediately respond to CNBC’s request for comment.
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