Facebook has faced significant setbacks since it announced its Libra stablecoin. The asset, which was to launch in June, now looks set for a substantial overhaul. Earlier today, the Financial Times reported that the Silicon Valley giant is set for a 20201 launch as a dollar-backed stablecoin.
Rolling Out Other Currencies Soon
Citing sources familiar with the digital asset, the Financial Times explained that the Libra Association had decided to adopt a single-currency peg to the asset.
They would eventually add more fiat currencies to the basket of assets backing Libra’s value, but it will start as a dollar-backed stablecoin.
This development is a significant departure from the initial Libra plans. At the time Facebook announced the asset’s whitepaper, the social media company confirmed that it would be backed by several currencies – including the dollar, British Pound, Singapore dollar, and the Japanese yen.
The news source added that Libra should launch sometime in January. However, there’s still no official launch date. As an official announcement shows, the Libra Association has initiated licensing procedures from the Swiss Financial Market Supervisory Authority (FINMA).
As an agency representative told the Financial Times, they aren’t at liberty to discuss anything related to the company until the licensing process is complete.
Libra’s Long Road Here
Libra has gone through several rounds of changes since the asset came into the limelight. Despite regulatory pushback home and abroad, Facebook has been forced to make several changes and concessions to the asset.
The social media giant has also dealt with the departure of several firms from the Libra Association. Most notable are MasterCard and PayPal, the latter of which has launched crypto trading services and is looking to improve digital assets’ functionality as payment methods.
Despite the challenges, Facebook is committed to ensuring that its asset sees the light of day. Critical to the company is currying favor from regulators – especially at home. Over the past few months, Facebook has hired several policy advisers and former regulatory agency officials to keep Libra alive.
Earlier this week, the firm announced the hiring of Saumya Bhavsar, top compliance, and regulatory expert, as the new Libra Network’s general counsel. Bhavsar brings two decades of experience in legal, compliance, and regulatory experience. She has previously worked with the United States Treasury Department, the European Commission, and banking giant Credit Suisse.
According to Jeffrey Emmett, the managing director of Libra Networks, Bhavsar is:
“A strategic leader with demonstrated ability and success in legal, regulatory and operational roles in one of the most highly-regulated industries.”
She will be responsible for navigating Libra through the regulatory landscape and ensure that the asset operates within set rules.