- It’s 2020 and Libra Coin is yet to launch
- Libra is halted in anticipation of future disaster, not its past transgressions
- Facebook’s crypto project might not launch this year – Ryan Selkis
Cryptocurrency News Today – It is 2020 already and Facebook’s Libra Coin is not in the market. The flip of the calendar might not be a flip for the better for the social media giant. Facebook had a lot of challenges all through last year and got regulators riled up. Nevertheless, this time, it was not the past transgressions or consequences of Facebook. Rather, it was in anticipation of a future disaster.
Facebook’s Crypto Plans Still Halted in Anticipation of a Future Disaster
In Q2 last year, all eyes moved from the mammoth rise of BTC to Menlo Park. Facebook unveiled its GlobalCoin project, calling it Libra. Facebook designed Libra to be a cryptocurrency to ‘banked the unbanked.’ Nevertheless, the noble intentions of the firm made people suspicious. According to Facebook, Libra would be backed by government assets – deposits and fiat, its peg changeable, and superintending government authority. That sounds like a complete nightmare for regulators.
Hence, regulation and perception seemed opposed to the crypto of Facebook, delaying the launch of Libra by more than a year. Now, as the New Year has come, the digital currency market is six months off a halving and the digital currencies backed by central banks are the norm. Whereas, the forerunner of this sovereign digital currency-wave – Libra – is on the backfoot.
Libra Project might Not Launch This Year
The delayed launch of Facebook’s Libra project could be pushed for a few years, according to Ryan Selkis – the co-founder of Messari. Most estimates put the launch date of the project well beyond this year. Selkis said that Zuckerberg, Marcus, and crew “underestimated how unpopular” the crypto project would be.
PayPal, MasterCard, and Visa have also bid farewell to the project as regulators snapped. Selkis said that the social media giant has to make do with what is remaining, adding that it is not looking good. The initial platform of Facebook to weight government fiat and deposits simply will not pass, he added:
“The Libra team’s opening salvo to run a basket-weighted international reserve is definitively not going to happen in the next several years.”
David Marcus voiced an alternative, which his fiat currency-backed stablecoins. In October last year, when Facebook was under regulatory pressure, Marcus said that things could be done ‘differently’ rather than a synthetic unit, one where the Libra Association can have an array of stablecoins. Selkis was also in support of this course, adding that:
“Instead, it’s more likely the team starts developing single currency stablecoins for the markets in which it operates.”
The Libra is still suspended and there is no fixed date on when the project will launch. However, many industry experts say they do not see Libra launching in 2020 also.