Who does not die sees himself: Libra, the Facebook cryptocurrency would be very close to debut.
This was reported by the Financial Times, which allegedly received confidential information from three people directly involved in the development of the project.
Mark Zuckerberg's cryptocurrency should be available as early as January 2021, after the launch scheduled for last October was skipped because the Libra Association was unable to resolve some hitches in time.
In addition, compared to the initial idea, the project has been modified: Libra will not be a single cryptocurrency, but a set of many individual currencies defined in a territorial manner, that is, depending on the nation they will operate. Let's see what it means in the next paragraph.
Libra will be a "collection" of cryptocurrencies
To date, it is therefore difficult to hypothesize what the financial weight of the “broker” currency will be, as it will be influenced by the fluctuations of the individual local versions.
Each cryptocurrency, in the intentions of Facebook, will be linked to the "real" currency of the reference territory and the first to be available should be US Libra, or the one linked to the dollar with a 1: 1 exchange rate.
The other localized versions will be released in the following months, although the timing is not known, as it will depend on the required approvals.
For the dollar-linked version of Libra, the release will take place as soon as the Swiss Financial Market Supervisory Authority gives the green light.
A project severely limited by authorizations
The risk, according to some industry experts, is that Facebook's cryptocurrency is limited, also because Libra's digital wallet, which was initially known as Calibra, and is now called "Novi", will not be available in many countries and Furthermore, it is not even active in all states of the USA, since it has not received the necessary authorizations in every single state.
In short, the initial project of Mark Zuckerberg's cryptocurrency could be heavily downsized, but to have the confirmation it is necessary to wait until the first months of 2021.
For now, there is also curiosity about the impact that Libra will have on the financial markets.
- After numerous postponements and the definitive cancellation it seems certain that Libra (the Facebook cryptocurrency) will be launched in January 2021
- Libra will be "divided" by territories: it will be a stablecoin linked to the value of the state in which it is located. For example, in the US it will be linked to the dollar and will be worth exactly what the dollar is worth. In countries like Italy it will be tied to the euro and will have a value of 1: 1 with the euro, and so on.
- The wallet per pound will be called Novi and no longer Calibra.
I believe this "cryptocurrency" is only for Facebook to save. By creating your own currency and a wallet in which to contain it, you can monetize the Facebook empire (which, among others, includes Facebook, Whatsapp and Instagram) in this way the various social channels will be able to pay a page for the sponsorship of a content without a real movement of "cash" and without expenses. The costs will be borne by the users when they want to withdraw Libra for traditional currency.
But it's just my guess, we'll see.
What do you think of it? Do you believe in this project? Do you agree with me or not? So let me know yours in the comments.
As always, thank you if you made it this far, and see you next time!
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