The highly-anticipated Facebook-backed cryptocurrency, Libra, has just gotten a new launch date slated for in January 2021.
According to a Financial Times report, the Libra Association could finally “scale back its ambitions once again.”
Recall that the association, which consists of other investors, has faced a series of challenges with registration in the past.
More so, due to the currency’s nature, many central banks and regulators have shown concerns about Facebook’s vision.
These challenges subsequently forced major participants from the Libra Association to withdraw from the project.
About Libra Currency
Unlike regular altcoins such as Bitcoin, Etherum, and their likes, Libra currency is rather designed to be a stable coin.
For beginners, stable coins are cryptocurrencies that do not fluctuate in value against a specific fiat currency.
If you have had a chance to buy a bitcoin, for instance, you will realise that the value is not constant.
Hence, such cryptocurrencies like Bitcoin are mostly unregulated while market values are subjected to the law of supply and demand.
On the other hand, a single unit of USD-backed stable coin, for instance, is usually valued at $1.
As in Libra currency, Facebook confirmed that its stable coin would be backed by various fiat currencies, including USD, EUR, GBP, and SGD.
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However, due to various constraints from different governments, Facebook is reportedly considering otherwise.
In the latest development, Financial Times reported that Facebook is now looking at launching a single dollar-backed coin instead.
If the company perhaps succeeds this time, then the USD-backed Libra currency will compete directly with other stable coins.
Other prominent stable coins currently thriving in the cryptocurrency market include USDC, PAX, and Tether (USDT).
In addition to this plan, Facebook will reportedly launch Libra wallet – Calibra (rebranded as Novi) at almost the same time.
Recall, that Facebook back in May, rebranded the Libra wallet from Calibra to Novi in an attempt to distinguish the project as a stand-alone one.
The rebranding also follows a lot of distrust from regulators. As such, Facebook needed to clear the air that the Libra project isn’t a Facebook project per se.
There are other participants in the Libra project aside from Facebook. The likes of Andreessen, Coinbase, Lyft, Spotify, Uber, Shopify, among others, were also key players.
About Novi (formerly Calibra)
While the name may sound strange to some persons, Novi, which was rebranded from Calibra, isn’t a new project.
Doubling as a wallet for the Libra currency, Novi is also a pipeline project like Libra currency.
According to Facebook, the Novi wallet will operate as a blockchain often used by other non-stable cryptocurrencies.
However, in this case, the Novi wallet, which will operate as a stand-alone app, will let users send and receive Libra tokens.
Additionally, users will manage Novi account from both Messenger and WhatsApp, two of Facebook subsidiaries.
In the meantime, it is not clear whether other associates of the Libra Association also plan to launch their various Libra-based services as soon as January.
However, it is important to note that the Libra project is an independent one consisting of various associates.
On the other hand, Novi is purely a Facebook project headed by David Marcus
According to the tech giant, the Novi app is mainly purposed for remittance and peer-to-peer payment across the world.
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