Libra, the stablecoin linked to Facebook that legislators are continuously targeting, could hit the market as early as January 2021, albeit in a more limited format than the multi-currency basket originally envisaged.
According to a Financial Times report on Friday, the Libra stablecoin project could bring a single dollar-linked stablecoin to market next year, according to "three people involved in the initiative."
The global stablecoin project was originally intended to be pegged to a basket of multiple fiat currencies, but was withdrawn by project leaders in April due to regulatory pressure from lawmakers in the US and abroad.
Project leaders announced that Libra could be launched as a series of stablecoins, each pegged to a fiat currency rather than a basket of multiple currencies during this revision.
According to the FT, the “global stable coin” of Libra will now simply be brought onto the market as a single coin with 1: 1 support from the US dollar, provided this has been approved by the Swiss financial supervisory authority FINMA.
The other currencies within the cart and composite may be introduced at a later date. The US dollar coin could hit the market as early as January, according to the FT, whose sources were not named.
Facebook introduced the Libra project in June 2019 and announced its vision for the global stablecoin.
Lawmakers around the world were immediately faced with regulatory backlashes raising concerns about the Libra's potential to threaten financial stability or to facilitate money laundering.
The social media giant helped found the Libra Association, a governing councilor for the project, later that year. It now has 27 members.
While its limited form as a 1: 1 peg to the US dollar could reassure policymakers, the project still faces a significant battle as regulators seek to contain the digital payments industry and hold senders and recipients accountable for their transactions pull.
Libra Association spokespersons did not immediately return a request for comment.