Today The Financial Times released news that Facebook will go through with its release of its own digital currency, called Libra. It may even be released as soon as January 2021! This is interesting news for all digital currencies, including cryptocurrencies. Even though Libra is in no way comparable with decentralized cryptocurrencies like Bitcoin, Ethereum and Hive. But it is important news.
Because Libra, when the first time its birth was announced, stirred up the financial world. Regulators were very worried about the effect it would have on the "Fiat" currencies. Therefor Facebook had lots of difficulties in getting it regulated. US regulators actually have not given their consent. The regulation in fact is done by the Swiss regulators. And that consent is very close to official now.
Firms like Paypal, Mastercard and Ebay that were first named as partners have pulled out their interest in the project. Possibly because of the pressure from American and European regulators. So, Libra that was first announced is not the same Libra that is coming out in January. A smaller more light version is was is going to be released, but who knows to what it can evolve?
At first it will be pegged to the US Dollar, no other "fiat" currencies will be in the peg, but The Financial Times says that can be the case later.
Now, the big question is, what will this do to the Fiat system? Will Libra cause a complete turnaround from Fiat to digital currencies? Or will it just be a small ripple in a big pond?
We shall see, but it is good news for Cryptocurrencies, as it will attract new people to digital money, and that can only be a good thing!
Sincerely,
Pele23
