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Facebook May Launch Its Own Cryptocurrency In 2021 – Financial Times

Libra will initially be pegged to the US dollar.

The Financial Times, citing anonymous sources, published the news that Facebook plans to release the Libra cryptocurrency in January 2021.

Sources said that for now Libra will be pegged only to the US dollar, and later it will be pegged to the euro, and to the multicurrency token, and to other currencies. As for the release date, so far nothing is known about this, since the Swiss regulator Finma has not yet approved the release of the cryptocurrency. However, sources claim that in January 2021 there will be an official confirmation, especially since six months have passed since the application was submitted. However, Finma declined to comment.

Meanwhile, Facebook has already prepared a crypto wallet called Novi. At first, residents of the United States will be able to use it, and then other countries and regions. The thing is that the company wants to focus on large channels of money transfers, and such channels exist in the United States. At the moment, the social network is working to license Novi in each of the states.

libra

Recall that the Libra Association, which, in addition to Facebook, includes 27 other companies, such as Uber and Spotify, was created in 2019. It was planned that the cryptocurrency will be released this year, however, regulators from different countries – the United States, China, G7 – said that Libra could affect the exchange rate of the dollar and euro and the ability to make anonymous transactions and conduct banking activities outside the supervision of regulators. By the end of 2019, PayPal, Visa, Mastercard, eBay left the association, and European regulators refused to approve the launch of Libra, citing the fact that the current EU legislation is not ready to use stablecoins (stablecoin is a cryptocurrency tied to the value of conventional currencies – ed.) …

As Reuters reported: “No global stablecoin system should start operating in the European Union until legal, regulatory and supervisory challenges and risks are properly identified and addressed,” EU finance ministers said in a joint statement.

The EU is also considering developing its own cryptocurrency that will compete with Facebook’s Libra cryptocurrency.

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