Latest in Tomorrow

Image credit: Chesnot via Getty Images

Facebook's Libra currency could debut in a limited form early next year

The Libra Association reportedly plans to launch a single stablecoin backed by the dollar.
Igor Bonifacic, @igorbonifacic
November 27, 2020
225 Shares
Share
Tweet
Share

Sponsored Links

PARIS, FRANCE - OCTOBER 21: In this photo illustration, a visual representation of digital cryptocurrency coins sit on display in front of a Libra logo on October 21, 2019 in Paris, France. Several European countries, including France, are preparing to veto the virtual currency project Libra, dangerous for the global economy, according to the French Minister of Economy, Bruno Le Maire. Libra is a cryptocurrency and virtual currency project initiated by Facebook that includes a consortium of twenty-one major corporations and international NGOs. (Photo by Chesnot/Getty Images)
Chesnot via Getty Images

Facebook controversial Libra cryptocurrency could launch as early as January, according to the Financial Times, but it appears the project has once again scaled back its ambitions. When the Libra Association, the consortium Facebook co-founded to oversee the project, shared its latest plans in April, it said its goal was to create multiple digital “stablecoins” of fiat currencies such as the dollar, euro and pound.

As TechCrunch explains, stablecoins are cryptocurrencies that don’t fluctuate in value against the real-world money they’re based on. In that way, a single stablecoin backed by the dollar is always worth one dollar. The Libra Association had also planned to create a composite of all of its tokens. The group came out with this plan after regulators expressed concerns over its original intention to create a cryptocurrency based on a basket of real-world currencies.

According to the Financial Times, the Libra Association now plans to launch a single coin back one-for-one by the US dollar. The 27-member consortium reportedly still plans to create coins based on other fiat currencies, but those will come at a later date. The composite coin will come later as well. Libra’s exact release date will depend on whether the currency gets the necessary approvals from regulators.

Facebook will likely launch Novi, its Libra wallet, at the same time. One person involved with the wallet told the Financial Times it’s “ready from a product perspective.” The app will allow you to send and receive Libra tokens. You’ll also be able to use Messenger and WhatsApp to manage your Libra balance. Facebook reportedly won’t launch Novi everywhere, instead it will focus its efforts initially on the US and a couple of countries in Latin America where digital currencies are already popular.

What the report doesn’t tell us is what some of the Libra Association’s more high-profile members such as Spotify and Uber plan bo do when the coin is available to the public. They told the Financial Times they’ll take a wait and see approach before investing in use cases.  

All products recommended by Engadget are selected by our editorial team, independent of our parent company. Some of our stories include affiliate links. If you buy something through one of these links, we may earn an affiliate commission.
Comment
Comments
Share
225 Shares
Share
Tweet
Share

Popular on Engadget

Put Bernie Sanders almost anywhere with this Google Street View app

Put Bernie Sanders almost anywhere with this Google Street View app

View
'Call of Duty: Warzone' is about to get a big esports push

'Call of Duty: Warzone' is about to get a big esports push

View
Raspberry Pi Pico is a $4 Arduino alternative

Raspberry Pi Pico is a $4 Arduino alternative

View
Instacart lays off 1,900 workers, including the 10 who formed a union

Instacart lays off 1,900 workers, including the 10 who formed a union

View
Joe Biden names Jessica Rosenworcel acting FCC chair | Engadget

Joe Biden names Jessica Rosenworcel acting FCC chair | Engadget

View

From around the web

Page 1Page 1ear iconeye iconFill 23text filevr