Facebook’s cryptocurrency Libra is one of the most polarizing coins in the digital coin universe. Even Tether, by comparison, has caused far less outrage and widespread concerns when compared with Libra. As regulators around the world are teaming up against Libra, people have now started speculating if and when the currency will be out.
Derivatives Based on Libra
In an interesting case of speculation, crypto futures exchange platform CoinFLEX has launched derivatives based on Libra. The product doesn’t use the unlaunched cryptocurrency as its underlying asset. Instead, it speculates whether Libra will be able to launch and become fully operational by the end of 2020.
Note that Facebook wants to launch Libra by mid-2020 but has also said that it wouldn’t go ahead with the event if the regulators are not satisfied. Going by the current state of affairs, the regulators don’t seem impressed with the cryptocurrency offering. They have heralded several concerns about Libra ranging from the threat it poses on the global financial system to anti-money laundering and terrorism financing compliance issues. Libra has even been criticized by members of the crypto community who believe that it is too centralized to be called a cryptocurrency.
Will Libra Launch on Time?
The biggest question on everyone’s mind is the launch date of the digital currency. CoinFLEX chief Mark Lamb believes that Facebook could take on the global banking system right from the start. However, it is uncertain when that day will arrive. He added, “The political backlash has been brutal, and it’s anyone’s guess if Facebook will get this over the line.”
But Facebook’s head of Libra David Marcus believes otherwise. He is still sticking to the mid-2020 launch plan, even when CEO Mark Zuckerberg has been very evasive in pinning an actual launch date for the coin. He is not giving any direct answers to questions about Libra. On the other hand, Libra Association’s COO Bertrand Perez spun his answers to reflect the indecision at the company. He said, “We cannot say that we won’t launch in 2020, or that we are certain to launch on a particular date in 2020.”
Eventually, what happens to Libra depends extensively on the regulators. France and Germany have already pledged to keep Libra off-limits and US President Donald Trump even asked Facebook to get a banking charter if they intended to work like a bank. Meanwhile, grapevine reports suggest that some of the two dozen partners of Facebook are rethinking their association with the project because of regulatory backlash.