The launch of Libra, Facebook’s cryptocurrency, will take place in January 2021. The Financial Times reveals it.
From what the publication reveals, confirmation would come from at least three people involved in the initiative.
However, compared to the original project there would be significant changes. For the moment Libra will only be anchored by the US dollar. Initially, it was supposed to be pegged to several fiat currencies, but FT sources explain that this will happen at a later date.
A definite date for the launch is missing but the most likely hypothesis is January 2021. They are still waiting for the approval of the Swiss Financial Market Supervisory Authority. Libra chose Switzerland as its headquarters, so it will first have to be given the go-ahead by the local authorities, to which it will present itself as a means of exchange and payment.
There is currently no confirmation on Libra’s official channels. The latest confirmed news concerns the appointment of Saumya Bhavsar as General Counsel of Libra Networks. She is in charge of guiding the operations to obtain payment licenses for Libra.
Coming from Credit Suisse, Saumya Bhavsar has a long experience in European and US credit institutions, where she has been particularly involved in regulation and services. She also has a background in the US Department of the Treasury’s Office.
Saumya Bhavsar appeared enthusiastic about the appointment
“I am thrilled to be joining the Libra Association as it progresses toward enabling a more inclusive global financial system. Along with many in the banking industry, I have been watching the Libra project from afar and believe the Libra payment system is poised to transform the industry and enable unprecedented financial innovation and inclusion at a time when we need it most”.
James Emmett, Managing Director of Libra Networks, commented:
“Saumya is a strategic leader with demonstrated ability and success in legal, regulatory and operational roles in one of the most highly-regulated industries. I am looking forward to working with Saumya and know that her expertise will be crucial in launching and managing a compliant payment system”.
Waiting for reactions to the launch of Libra
The Libra project seemed to be at a standstill due to the hostility of the regulators. Once the necessary authorizations have been received from Switzerland, we will have to wait and see how it can be accepted internationally.
The launch of Libra promises to be disruptive. Mark Zuckerberg‘s aim is to make this cryptocurrency system as easy to exchange money as it is today to exchange a photo.
However, the authorities immediately became concerned about the risk that a private individual might launch a currency that would compete with central banks. These fears were more than justified because, unlike the cryptocurrencies currently in circulation which are widespread but niche products, Libra could potentially be used by the 2 billion Facebook users.
All that remains is to wait for official comments and reactions.