It looks like Facebook’s Libra stablecoin is back on the cards and might launch as early as January 2021.
Facebook announced their intention to launch a multi-currency stablecoin in June 2019 with a vision to create a global coin.
The project was met with fierce opposition from the US lawmakers, who claimed to be concerned about Libra’s threat to financial stability and it being use as a money laundering tool.
According to a report by Financial Times, however, a revised version of the Libra stablecoin is now close to launching. And the new Facebook-coin will instead be a US dollar-pegged stablecoin, rather than a basket of the leading government fiat currencies.
Governments Feared The Social Media Giant’s Power
Facebook’s global presence and over 2 billion accounts had alerted the US and other governments, who were fearful of the power a Facebook-coin would give the social media giant.
It appears that the choice to create a stablecoin tied to a basket of currencies rather than just the USD had prompted the US government to pressure Facebook and their partners to revise the project.
Due to regulatory pressure from lawmakers in the US and abroad many partners, including PayPal, dropped out of the project, and things had even gone quiet on the Facebook side.
PayPal recently made its first foray into the Bitcoin space after it announced it would offer Bitcoin buying, selling and sending services, and of course Facebook doesn’t want to be left behind.
Now, Facebook plans to launch Libra’s ‘global stablecoin’ – which will be a 1:1 peg with the USD, if approved by the Swiss financial regulator FINMA.
And this will be easier for governments to regulate, while at the same time giving Facebook access to the cryptosphere.
But the best thing is it’s a seamless onboard for 2 billion users that are about to discover cryptocurrencies for the first time.
Libra Stablecoin Is Bullish For Bitcoin
Facebook’s Libra coin has been out of the limelight for a while now, and the news that its launch could be imminent is very bullish for Bitcoin.
Firstly, at over 2 billion users Facebook is the biggest network and the biggest advertisement company in the world. When it launches Libra, it will be everywhere, and cryptocurrencies will be the talk of the town.
Prominent Bitcoiner, Caitlin Long once said Libra coin will be a ‘Trojan Horse for Bitcoin’ because its 2 billion users will be given a cryptocurrency wallet, and will be educated about the power of cryptocurrencies.
They will then be intrigued by it to learn more, and start looking at Bitcoin to see what it’s all about. They will begin to understand the scarcity and integrity of Bitcoin, and they will realise their hard earned wealth that’s sitting in a Libra coin is simply a representation of the unlimited USD.
Facebook-Coin To Launch Soon, Great Timing For Bitcoin
Just when it looked like Libra Coin had been shelved, the project is almost ready and according to a leak at FT will launch in early 2021.
After regulatory pressure Facebook backtracked from a basket of currencies to a 1:1 USD peg stablecoin.
And with only the Swiss authorities standing in its way, Facebook is about to onboard 2 billion global users to the cryptosphere.
Facebook users, especially those in developing countries will reap the benefits of Libra by being connected to the financial system.
But I expect Bitcoin to reap the benefits long term. 2 billion new people with a crypto wallet, and a fresh intrigue in cryptocurrencies. If only 5% of those are intrigued enough to explore Bitcoin that’s another 100 million users.
Author: Tommy Limpitlaw
Where can I buy Bitcoin in Canada?
There are many exchanges operating in the Canada. However, the most recommended exchanges are Kraken or Blockfi. Or you can buy Bitcoin from Bitcoin marketplaces, such as LocalBitcoins or Paxful. All of these exchanges and marketplaces are global with high liquidity and excellent customer service. Feel free to read the reviews of each one.
What price will Bitcoin reach?
There have been many price predictions ranging from $0 to tens of million per Bitcoin. But the truth is, nobody knows for sure. However, it is the soundest and hardest money ever created. Many say it is digital gold, but I believe in the digital age, it is more useful than gold. So, let’s say Bitcoin reaches the market cap of gold, which is believed to be $10 trillion, each Bitcoin would be worth $500,000. Is that reachable? Absolutely! Will it be plain sailing? Absolutely not!
How long does it take to mine 1 Bitcoin?
On average, the time it takes for miners to mine Bitcoin is 10 minutes. But they don’t just mine 1 BTC. Mined Bitcoins are created with every new block and these produce the Bitcoin block reward which at the moment is 6.25 BTC, so you could say it takes less than 2 minutes to mine each Bitcoin.
Can you buy less than 1 Bitcoin?
Yes. Every Bitcoin can broken down into 100 million bits. They are known as satoshis, after the pseudonymous creator Satoshi Nakamoto. And some companies will let you buy as little as $1 worth of Bitcoin, which at time of writing is worth about 11,000 satoshis. There are many companies that have a system for dollar cost averaging (DCA). This is a great way to buy Bitcoin, and is known in the space as ‘Stacking Sats’. Basically, what you do is set up small automatic, recurring payments to buy Bitcoin (or sats), and you DCA over time.