Posted on Nov 27, 2020 at 10:18 a.m.Updated Nov 27, 2020 5:10 PM
Facebook will launch the first version of its crypto, Libra, in January according to the “Financial Times”. It will be a crypto whose price is stable and which will be backed by the dollar. 1 Libra dollar will be worth 1 dollar. This launch must obtain the approval of the Swiss Financial Market Supervisory Authority. The association that manages the Libra project is in fact based in Switzerland.
Stable cryptos or similar stablecoins, backed by the greenback, there are already several, the largest of which, Tether, weighs $ 19 billion. Unlike other volatile cryptos such as bitcoin (16,900 dollars or 14,167 euros), the price of stablecoins is stable and varies very little except in exceptional circumstances.
The American group has seen the enthusiasm for the market since PayPal’s decision in October to authorize payments in cryptos. Despite the recent correction, this market is on an upward trajectory. Volumes exploded with the influx of new investors.
Divide and rule
Facebook then wants to launch the other versions of its currency backed by major currencies such as the euro, yen or pound sterling. It will thus cover all the major markets. He had given up on his initial ambitious project of having a single crypto backed by a basket of currencies (euro, dollar, yen…). A complex project that had aroused strong opposition. The initiative of the American giant was an electric shock for the States, which led them to accelerate their reflections and projects of launches of their digital currencies. Libra is seen as a threat to their monetary sovereignty.