The launch of the cryptocurrency by social media giant Facebook is one of the hottest topics in the crypto industry. The project has been codenamed Libra, and according to information, the company will launch a stablecoin to allay fears of the customers regarding the turbulent nature of cryptocurrencies. The stablecoin will be pegged to some fiat currency which will provide it stability and help it to emerge as a genuine medium of doing transactions.
Latest Report on Project Libra
A recent report on the BBC claimed that Facebook is going to launch its cryptocurrency, which has been dubbed “Global Coin.” According to the report, around a dozen countries will get access to the Facebook cryptocurrency in 2020 as the company plans to roll out a whole ecosystem of payments based on its Global Coin. The trial test in this regard is expected to start by the end of this year, and the full launch is expected in the initial months of 2020. Facebook is aware of the regulatory challenges relating to launch of its stablecoin in the market and to minimize any kind of legal issues pertaining to this development, and Facebook is taking advice from a number of experienced Banking and Finance veterans including the governor of the bank of England and various officials working in US treasury. These people have been consulted to have a clear understanding of the regulatory mechanism and what the company has to do in order to launch the project in a smooth and seamless manner.
The news is significant amidst reports of the Facebook collaborating with a number of payment gateways including MasterCard and Visa to develop an ecosystem for its upcoming stablecoin project. The company is reaching out to money transfer players, also including Western Union, to cobble up support. Facebook is eyeing its huge user-base of around 2 billion people that will help the company to make this project successful. According to the reports, this project will enable the users to transfer Facebook’s coin amongst them in addition to using this cryptocurrency for various kinds of online purchasing and shopping activities.
Just so you know, Facebook has already registered a new company with the name of “Libra Networks” in the Geneva city of Switzerland on May 2, 2019. This new entity is going to provide various kinds of financial technology support to project in addition to providing related hardware and software solutions. It is also reported that Facebook is looking to raise around $1 billion to fund its stablecoin project. It will be interesting to witness, which are the countries the company will choose to launch its stable coin in the very first phase. Quite naturally, the countries having crypto-friendly laws and regulations will be the first choice, but then the probability of some legal or technical issues creeping up on the project can’t be ruled out completely. Also, the response of users will also be one of the important criteria on which the success of this project hinges.