Cryptocurrency Libra may be approved by the Swiss service for supervision of financial markets in January. The project of cryptocurrency has been simplified and will consist of several “tablconv”, provided by individual currencies such as the dollar or the Euro.
Shares of Facebook (FB), increased by 35.35% since the beginning of the year, rose in July by 0.8% after the Financial Times, citing anonymous sources, reported that the Geneva-based Association Libra can launch its cryptocurrency in January 2021.
The Association of Libra, one of the 27 members which is a subsidiary of Facebook Novi (rebranding Calibra), seeks approval of issue of its series “tablconv”, supported by some traditional currencies from the Swiss service for supervision over financial markets.
The ambition of the project Libra, which are also Farfetch, Lyft, Shopify, Spotify, Uber and others, had to be reduced after the financial stability Board countries “Big twenty” in April indicated the measures necessary for regulation and oversight of digital currencies, to avoid using them in illegal activities and undermining the security of financial systems of States.
In addition, several Central banks “the Big seven” reported that the learning opportunities and risks associated with digital currencies, and some are planning the launch of its own. Thus, the head of the European Central Bank, Christine Lagarde, announced in October that the regulator is preparing to release a digital euros in addition to the notes. The Bank of England is also holding consultations on the creation of digital pound, but the Bank of Japan and the Federal reserve has postponed this issue.
According to reports, the first running steilcoom is likely to be a digital coin secured by a dollar, while one unit stablein will be worth one dollar. This may convince regulators to approve stabilio because they will be more stable in price, unlike typical cryptocurrencies such as bitcoin. This theoretically makes them more suitable for payments and remittances.
Libra mentioned the dollar, Euro, pound sterling or Singapore dollar as the base currency for its various tablconv.
“We keep the design multicurrency Libra, but it is radically modified, streamlined and simplified compared to the original,” – said in an interview with Reuters in April, Christian Catalini, chief economist from Novi Facebook.
It is known that the launch of cryptocurrency Libra will be the Novi app that will allow you to purchase bitcoin and send to others, additionally, the account access will be available through Messenger and WhatsApp. To register in Novi, the user will need to take a picture of the identity card of the state sample. The company does not disclose its policy in respect of fees, but promises to be “transparent”.
Facebook expects that people will start using Novi for money, including international transfers and peer-to-peer payments. It is unclear who the other members of the Libra Association plans simultaneously with Facebook to start using the cryptocurrency Libra in their services and platforms.
When stabilini are launched, they will be limited to those countries that have given permission for their use.
The Swiss service for supervision of financial markets (FINMA) had no comment, except the statement in April confirming the receipt of the application Libra on the receipt of payment of the license.
