The head of the Libra Association explained they are committed to launching the Libra digital asset during the second half of 2020. This comes after several months in which regulators increased their pressure on Facebook to disclose its plans related to the virtual currency.
Facebook’s Libra Digital Asset To Be Launches On H2 2020
During an interview with Les Echos, Bertrand Perez, director-general of the Libra Association explained they are working in order to release the Libra digital asset during the second half of 2020.
The comments were made after very negative comments from France authorities regarding this digital asset. France’s economy and finance minister stated they would not allow Libra to operate within the country’s borders.
Libra is a digital asset that is being developed by Facebook and that aims at helping individuals around the world have access to financial services. This virtual currency is not going to have a volatile price as many other digital assets such as Bitcoin (BTC). Libra will be backed by fiat currencies from different countries including the U.S. dollar, the euro, the Japanese yen, the British pound and the Singapore dollar.
Perez explained that they do not want to create new supplies of money with this new token. Regarding this situation, Perez mentioned:
“We don’t want to become a new BlackRock. That’s why these concerns about the destabilizing effect our reserve currency could have on central banks’ fiat currencies – which figure in our basket – seem unfounded to us.”
It is worth mentioning that the Libra digital currency will not be backed by the Chinese Yuan. This is very important because U.S. Senator Mark Warner said China could press Facebook to add the RMB to the basket of currencies to back the stablecoin. This is clearly something that would have a negative impact on the U.S. dollar. The Chinese RMB would have a larger influence around the world.
Facebook is experiencing a difficult time with regulators in different jurisdictions due to the uncertainty this digital currency generates. Countries are afraid of the negative impact it could have on fiat currencies and the economy.
Nevertheless, Perez considers that these regulatory issues could eventually be solved before the official launch of this virtual currency. The company decided to take an entire year before the official release of the Libra cryptocurrency in order to solve all the problems it could eventually create.
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