Facebook Libra is back: what you need to know

Facebook Libra is back: what you need to know - libra facebook 1024x576Facebook has changed its plans regarding the Libra cryptocurrency project. This decision comes after months of massive regulatory pressure and political pushbacks. According to a new report from The Information, Facebook no longer plans to produce the Libra token. On the contrary, it is in the process of forming a partnership with the nonprofit Libra Association, while other automatic trading platforms - such as Bitcoin system - are preparing to add it to their portfolio. 

The Libra Association

The Libra Association is at the heart of the project's digital payment strategy. Instead of focusing solely on developing and distributing the token, Facebook's Libra will have a support function for both government-backed currencies - such as the US dollar and the British pound - and for the Libra cryptocurrency when it is completed.

The news report also said that Facebook will delay the launch of the Calibra digital wallet, which was to be a showcase for Libra technology. Calibra would allow anyone with a smartphone to buy and store cryptocurrencies, paying for it with various products.

Under the new plans, the portfolio will support multiple currencies, including Libra, at the time it is launched. However, the list of supported currencies is restricted to a selection chosen by the developers. This could adversely affect the adoption of Calibra.

Calibra, whose launch was initially scheduled for the summer, will be released in October 2020. The leaked information hints that Calibra's storage and money transfer features are scheduled to be implemented on Facebook Messenger and Whatsapp. But it is not yet clear when this will become operational.

The Libra project

Libra was first announced in June 2019, as a bold move by Facebook and its partners to enter the new digital payment industry scene. The project is based on two main branches: the Libra currency, designed similarly to other cryptocurrencies but with substantial differences such as stability; and the blockchain network that will be the basis of the token.

Thorough checks

Facebook had predicted that there would be scrupulous control over its product, but it was not ready for the hellish storm that broke out in this regard. Significant political rejections and regulatory concerns hit the company in the initial and launch stages of the project.

To deal with this situation, the Libra Association was born, of which Facebook and Calibra would represent only one member. The association originally included 27 companies, although many have since abandoned the cause, overwhelmed by controversy.

An exodus of partners

After months of near silence, a new report from The Information revealed that Facebook is planning to launch the product in October 2020. Although many of the Libra Association partners are retiring, Facebook plans to continue with its controversial project. Calibra, the portfolio associated with the project, will help launch and support Libra and other government-backed currencies.