The Facebook-backed cryptocurrency scale could launch in January, according to a Financial Times report. What is more interesting is that the Libra Association, the consortium founded by Facebook, could reduce its ambitions again.
When first revealed, the Libra cryptocurrency was supposed to be a brand new currency that was tied to a basket of fiat currencies and securities. Originally it would not be based on a single real currency, but on a mix of several currencies.
Many central banks and regulators were concerned about this vision. Hence the Libra Association changed course and started working on several stable coins in one currency.
Stable coins are cryptocurrencies whose value does not fluctuate against a specific fiat currency. For example, one unit of a USD-backed stablecoin is always worth one dollar. The Libra mentioned USD, EUR, GBP or SGD as the base currencies for their various stable coins.
According to the Financial Times, the Libra Association is now planning to introduce a single dollar-supported coin. It will directly compete with other stable coins like USDC, PAX, and Tether (USDT). The Libra Association still plans to introduce other currencies, but that will happen at a later date.
Facebook will most likely launch its own Libra wallet at the same time. Originally called Calibra, the Facebook subsidiary was renamed Novi in May.
In addition to having a standalone app that lets you send and receive Libra tokens, you can manage your Novi account through Messenger and WhatsApp. Facebook expects users to use Novi for wire transfer purposes and peer-to-peer payments.
It is unclear whether other members of the Libra Association are planning to launch their own Libra-based service at the same time. Members are Farfetch, Lyft, Shopify, Spotify and Uber.