Facebook releases whitepaper for its new cryptocurrency Libra

Here's the whitepaper:'
https://libra.org/en-US/white-paper/

and here is a Tech Crunch article with details:
https://techcrunch.com/2019/06/18/facebook-libra/

In short:
-Decentralized pegged currency run as an independent entity from FB
-Founding partners include Visa, Mastercard, and Uber
-Wallet called Calibra will integrate with WhatsApp, FB Messenger, and its own app
-Users remain anonymous
-Based in Geneva, Switzerland

Comments

    CryptoHunterCryptoHunter Reputation: 18
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    Looks like a good time to short PYPL but this is not investment advice

    4b4f10823fbd254f39edbca60563f85e
    HopeHKHopeHK Reputation: 6
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    This all sounds good but if Visa and Mastercard are founding partners that pretty much defeats the whole purpose.

    b773d8cbfdf99d9d334bb0c229d58776
    DNXDNX Reputation: 14
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    @hopehk I have to agree that the spirit behind cryptos is eliminate powerful banks and take back control of our money. Yes, Visa and MC will lead to quick and widespread adoption for Libra but surely they will take their cut just like with fiat. So we are back to square one. What we need a crypto that is:
    1) Asset backed for stability
    2) Generally decentralized and anonymous
    3) Centralized only to the point necessary to make it useable for everyday purchases

    Libra claims to be this, but it is impossible to believe that Visa and MC would undermine their cash business.

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    RosiRosi Reputation: 1
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    @HopeHK yes it's like Monsanto opening an organic food store

    3a24dc6158ddc92d7417454a98098951
    HopeHKHopeHK Reputation: 6
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    Libra looks like an attempt by Visa and Mastercard to hijack the crypto concept before it takes hold. I can't say I blame them considering both consumers and merchants hate paying the high fees.

    The consensus is developing along the lines of what we've been discussing here. This article says that Libra isn't a cryptocurrency at all:
    https://www.coindesk.com/libra-isnt-a-cryptocurrency-its-a-glimpse-of-a-new-asset-class

    "The only thing Libra coin has in common with cryptocurrencies is that they all move on a blockchain."

    It's a stable coin like lots of others.

    One interesting thing to note is how it's value is pegged. "according to the white paper, it will be backed by “a basket of bank deposits and short-term government securities” (my italics). Notice the use of the term “securities.” An asset backed by securities is, by definition, also a security. Libra is more like an ETF than a fiat-backed stablecoin."

    Bring on the bureaucracy. This all has nothing to do with crypto.

    b35a50fc679c5545afcf2ddd52d62592
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