Facebook Reveals Libra Currency Whitepaper; Aims to Deliver “The Internet of Money”
Libra Blockchain and currency represent Facebook’s foray into financial services as revealed in new whitepaper.
In perhaps a historic moment for the validation of blockchain technology, social media giant Facebook has officially revealed its plans for a digital currency, which is only part of an ecosystem aimed at providing financial services to billions of people.
Libra currency, as per the whitepaper outlining it, will be deployed on the Libra Blockchain and will be backed by a reserve of assets and will be governed by an independent association in which Facebook will have as much say as other founding members.
Interestingly, the whitepaper does not call Libra a stablecoin, but a relatively stable cryptocurrency which will experience value fluctuations based on the underlying reserve assets.
“...Libra is not a “peg” to a single currency. Rather, as the value of the underlying assets moves, the value of one Libra in any local currency may fluctuate.”
The currency is purported to have intrinsic value due to backing by low volatility reserves in the shape of bank deposits, government securities and such, assuring holders that they will be able to exchange Libra currency with local fiat currencies at reasonably stable exchange rates.
The Libra Blockchain will use the LibraBFT consensus protocol, which follows the familiar Byzantine Fault Tolerant (BFT) consensus approach, and will allow users to have one or more addresses, not necessarily linked to their real-world identities. Facebook has also open-sourced the code for the Libra Blockchain, along with launching its testnet for developers.
Facebook’s foray into digital currencies makes sense as the company aims to build on its massive userbase and utilize its potential for providing financial services to billions around the world, especially in less developed countries where mobile payments have proven to be very successful.
Libra Blockchain and the currency are expected to launch in the first half of 2020 with the support of big-name founding members, including the likes of PayPal, Mastercard, Visa, Stripe, eBay, Spotify, Uber, and several telecom companies and venture capital firms.