Facebook's Libra cryptocurrency project will be launched before the end of 2020

The head of the nonprofit organization behind the development of the Facebook cryptocurrency initiative said that, despite all the barriers, they do not intend to deviate from the plan to launch a payment instrument.

In a conversation with the French publication Les Echos, Libra Association Chairman Bertrand Pérez said that stablecoin should be launched in the second half of 2020.

Perez's statement came almost simultaneously with the threat of the French finance minister to ban the development of the Facebook Libra project in Europe. However, the Director General of the Libra Association is confident that the project will be implemented in accordance with the developed plan.

Peresa noted that the Association is engaged in a constructive dialogue and intends to continue consultations with representatives of central banks and regulators around the world. According to him, Libra's capitalization can reach $ 200 billion.

At the same time, Perez noted that the Association has no desire to become a financial giant and compete with traditional financial institutions:

“We don’t want to become the new BlackRock [the world's largest asset management fund]. Therefore, all concerns about the destabilizing effect that our reserve currency may have on the fiat currencies of central banks included in our basket are unfounded. ”

Plans and Achievements of the Libra Association

The head of the Association also noted that more than a hundred applications for joining the organization have already been received, including many French companies. Next year, the number of members of the Association will reach the announced number of one hundred members.

Regarding the formation of a basket of currencies providing Libra, Perez believes that the basis will be the dollar, euro, yen, pound sterling and Singapore dollar. The use of the yuan "… will be partial," said Perez.

As for the proportion of currencies in the basket, discussions are ongoing, but, in his opinion, 50% of the basket should be formed at the expense of the US dollar. A decision on the weight parts in the Libra stabilization basket will be made by a vote of the members of the Association (two-thirds of the votes).

The reserve funds will be invested in the currencies shown in the basket and short-term national obligations of the states whose currencies are included in the basket.

Recall that the world's largest cryptocurrency exchange Binance announced plans to issue a digital currency Venus , working on a similar Libra scheme.

Publication date 09/14/2019
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