Libra to Launch Early 2021, Still Expecting FINMA Approval

Libra to Launch Early 2021, Still Expecting FINMA Approval

Libra, the ambitious Facebook project, is scheduled for launch in 2021, as early as January. The Libra digital currency will be launched in a more limited format than it was expected to be.

Reports claim that three individuals from the Libra project have revealed that Libra may solely introduce a single dollar-pegged stablecoin.

However, the project is still expecting an approval by FINMA, or the Swiss Financial Market Supervisory Authority. The Swiss watchdog released an announcement this April that it has commenced the licensing application for Libra.

In the statement released by FINMA, it was said that “The application filed differs considerably from the project originally submitted, e.g. with a view to the Libra payment system also supporting single-currency stable coins as well as the multi-currency Libra payment token. FINMA will now thoroughly analyze the application. As provided by the FMIA, it will impose extra requirements for additional services that pose increased risks“.

Libra was originally announced on 18th June of last year. The project was originally conceived to launch a digital token that was backed by a basket of global currencies. However, in 2020 the Libra Association dropped the premise of pegging Libra with multiple currencies due to regulatory pressure.

The Facebook project was initially met with criticism and backlash. Both European and Australian regulators warned the Association of future scams that would be using its name. Furthermore, in a drastic turn of events, PayPal pulled out of the association, alongside Visa, Mastercard, eBay, and other giants. They all claimed the main reason for their action to be regulatory.

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