Facebook's long-awaited Libra digital cryptocurrency could launch early next year, according to reports. When Libra was first announced in June 2019, it was to be backed by a mix of multi-currency support and government debt. Since then, however, the cryptocurrency has been subject to numerous regulatory controls, along with the loss of some high-profile backers. The Financial Times reports that the release will be scaled back significantly from Libra's original ambitious plans. Now, it looks like Libra will be released as a heavily watered down version, possibly as early as January. The launch will now involve a single digital currency backed by the US dollar. Other coins and the Libra digital composite of all its single-currency stablecoins are expected to follow at a later date.
Challenges ahead
The exact launch date is still pending regulatory approval from the Federal Financial Market Supervisory Authority, but when it arrives, it could be approved with limited fanfare. Libra has faced its fair share of challenges and there are fears that the switch to individual currencies will come with additional costs for users. Libra has also been hurt by its close association with Facebook, which has been accused of eroding user privacy. Although in theory the Libra Association is independent of the social network, Facebook is one of its 27 members. Facebook has also launched its own subsidiary, Novi, which aims to provide a digital wallet for Facebook users to use Libra currency. This will also be subject to regulatory review, with Facebook confirming that the wallet will need to get approval from each US state individually, as well as any other national jurisdictions it decides to embark on. Clearly, although the launch is already in sight, there are still many hurdles that Libra will need to overcome before making a major impact in the financial sector. Via the Financial Times