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Facebook’s Cryptocurrency Libra was announced last year. But due to their seamless p[roblems and controversies, it took more than one year to finally show itself in the market. With the current news hovering in the market, Libra might be introduced to the investors in January 2021.
Introduction
The reason for the Libra project being delayed was because of the three unknown people being involved in the project. Libra has performed several changes and now is all set for the market. However, it is being believed that Libra will be a limited version and might perform in certainly given environments.
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Why Libra Launched Got Delayed?
There were many reasons why Libra delayed a whole year before announcing its launch in the market. Though there were many reasons, we have enlisted only those which we think might have influenced the most.
Regulation
Cryptocurrency has always raised regulation issues. With having more than 2000 cryptocurrencies, we hardly have any regulatory structure. Even after a decade, people are skeptical about their performance and credibility. In an environment where regulation of cryptocurrencies is scarce, launching a new cryptocurrency might be a foolish idea.
Then there is the source of credibility. Every Cryptocurrency is decentralized in nature, making it independent from the government. In that sense, Libra is no different than the other Cryptocurrency.
Hence, it becomes crucial to let people know about the benefits and nature of the Libra. This process has certainly taken its time.
Privacy Concerns
When dealing with online data and interaction, privacy is one of the concerns that top the list. In June, Maxine Water, chairwoman of the US financial Service Community, asked the representative of the Libra to justify before congress.
The accusation on Facebook as they are prying on their users’ private moment with the help of their messaging features created an uproar in the social media industry. The event impacted to such an extent that Americans stopped using Facebook.
Lack Of Understanding
If Libra is just like the other Cryptocurrency, then why people will like to invest in Libra. There are already thousands of Cryptocurrency in the market that have a very little market cap. Then how adding a new Cryptocurrency will make any difference? Well, this is what people will think after seeing Libra.
However, let me tell you that Libra is one of the stable Cryptocurrencies backed by some big enterprises’ sarees. Does this spark your interest a bit?
Libra delayed a whole year before making its market appearance because it wanted to enter the market when people are aware of its market value and financial importance.
Issue With The management
Initially, it was said that Facebook itself would govern the glow of Libra. But that created an uproar in the market. Hence, Facebook was forced to form a nonprofit Libra association. This association consists of enterprise giants like Visa, Master Card, Uber, Spotify, Vodafone, and much more. This association will collectively control the price evaluation.
Restrict Launches In Many Countries
Then there is a problem where Cryptocurrencies are banned in some of the countries. For instance, in countries like India, Cryptocurrencies are banned. There are other countries as well who are still skeptical about the acceptance of ten cryptocurrencies. Hence, filtering out the countries where Libra can be launched is also one of the major factors resulting in a launch delay.
Will We Get A Stable USD Backed Cryptocurrency?
The long-awaited Cryptocurrency, Libra, will be launched in the early months of 2021. After waiting for more than a year, Libra has finally been accepted by the global financial regulators and launched as a US dollar-backed Cryptocurrency.
If you see from the market perspective, you will find that Libra is a thoughtful approach to adding value to the Cryptocurrency. This will help boost investors’ morale, and the normal folks will also be able to believe in its authenticity.
