In June 2019 the Libra project was revealed and at the time it has caused a lot of controversy, since then Facebook had to adjust and to reposition on their project. Facebook wanted to enjoy its popularity and decide to invest their millions of dollars into the cryptocurrency world. Let's see how did everything started, and how Facebook is planning to develop it in the future.

So what is Libra ? Libra is a cryptocurrency which belong to the Facebook universe : Instagram, Facebook and WhatsApp. Facebook wants to develop it worldwide by everyone including the 1.7 billion of people in the world who don't have access to a traditional bank system, furthermore Libra would be what we commonly call a Stable Coin it means Libra will have a fixed value and won't fluctuate (unlike Bitcoin for example), Libra would be guaranteed by reserves of different currencies (like USD or EUR). 

After the announcement was made a lot of people and regulators expressed their disagreements and opposition to Mark Zuckerberg's project. Central Banks fear of losing a part of their sovereignty as a consequence of Libra's potential ascendant. With all this trouble, the investors of the project joined and left according to the progression, so Facebook decided to review their way of doing. Some experts imagine Libra will be linked to USD or EUR or even another cryptocurrency issued by Central Banks. Facebook would then deploy its network but without exclusivity for the cryptocurrency Libra. This would allow the company to take advantage of its tremendous penetration rate to quickly make a place among the big names.

The association Libra indicates in this sense that it wishes to propose a network of payment in accordance with the norms in force. In addition, Facebook has already indicated that the approval of the American authorities would be a prerequisite for moving forward with the project. The initial launch date expected in late 2020 therefore seems to be badly compromised. However in order to alleviate regulatory concerns, Facebook’s Libra has just changed its initial plan to issue the Libra Coin multi-currency token and now aims to launch stable coins based on a single currency such as Libra (USD), Libra (EUR), or another one. In addition, Libra abandoned his plan to use a system without authorization.

The Association explained that one of the main concerns was the risk that the multi-currency coin Libra would interfere with monetary sovereignty and monetary policy if the network reached a significant scale and a large volume of domestic payments were made in Libra. Facebook also declared that it has officially launched the authorization process for payment systems with the Swiss Financial Market Supervisory Authority.

To conclude, I don't think we can be 100% sure about their future in the world of cryptocurrency, however we're talking about Facebook, a multi-billionaire enterprise so if they take the right decisions they will be able to finance. But I don't think Libra will benefit the other cryptocurrencies, It might in the worst scenario affect them in a bad way. Let me know what you think !