This article was translated from our Spanish edition using AI technologies. Errors may exist due to this process.
According to a report by the Financial Times, Libra, the Facebook-led digital currency initiative will hit the market in early 2021, but in a more limited format than predicted in previous days.
The Geneva-based Libra Association will unveil a dollar-backed digital currency, the outlet clarifies, citing one of the sources familiar with the situation. Broadly speaking, the combination of several currencies will not occur and this is due to pressure from banks and regulatory bodies.
Libra would be backed by a basket of the major currencies traded in financial markets – initially – but the decision will elude further organization of entities, as they raise concerns of disrupting financial stability and eroding the power of traditional currencies.
According to sources, the issue of Libra is subject to the approval of the Financial Market Supervisory Authority (FINMA). Which is in charge of regulating independent Swiss financial markets, supervising banks , insurance companies, among others.
In case it is authorized, Libra would compete with cryptocurrencies such as USD Coin (USDC), Tether (USDT) or TrueUSD (TUSD), which are considered relatively stable currencies and linked to the US dollar.
The ‘criptomonedas stablecoins’ are made in order to minimize the volatility of the price of the stable currency, tied to a basket of assets “stable , ” which makes them more suitable for cash transfers or payments.