La Libra, Facebook’s digital currency, announced for 2021 in a reduced format



(Agence Ecofin) – The launch of Facebook’s digital currency, Libra, could take place in 2021. The project could benefit from favorable factors in the global economy, but it will need to convince regulators first.

Facebook could launch Libra, its digital currency, in 2021, we learn from the British media Financial times citing people close to the process. The product is expected to arrive in a limited version, after the project has been the subject of widespread dislike from regulators, including in the United States, the country where the social media management company is headquartered.

The stakeholder association behind this digital currency project now plans to launch a single version of Libra that will itself be pegged to the dollar, at the rate of one unit of US currency for each Facebook digital currency. “The other forms of currency will be deployed later”, added the source of FT.

The exact launch date will depend on when the project will receive approval to operate as a payment service from the Swiss financial markets regulator. According to a consensus on the subject, this could happen as early as January 2021. At the moment, the authorities have not commented.

The timing to launch Libra seems right. Many analysts believe that traditional and especially US financial products will underperform in the coming years. For example, investors and households are looking for safe harbor investments for their assets under management or their savings. Since the onset of the volatility gripping markets this year 2020, synthetic financial products such as listed index funds and digital currencies such as bitcoin have been successful.

Indeed, behind the success of stock market indices such as the S&P 500 hides a solid performance of technology stocks that are overvalued and poor performance by companies in other sectors evolving in an uneven context of economic recovery. Also, US Treasuries and those of developed countries are gradually falling into the negative yield zone, or close to zero.

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