New Frankfurt School Blockchain Center Publication on Libra

Our cooperation partner Frankfurt School Blockchain Center has published an interesting article on Libra, the new stablecoin proposed by Facebook:

Facebook Coin: A Crypto Currency Relevant for Hundreds of Millions of People in Developing and Emerging Countries

Authors: Philipp Sandner, Jonas Gross, Felix Bekemeier

Here are their key findings:

  1. Libra will not be pegged to the USD or another traditional currency; it will be a basket, therefore, be “money”, but not a “currency”.
  2. Libra will therefore not target the enterprise payment sector. 
  3. Libra targets hundreds of millions of users in developing/emerging countries.
  4. The current approx. 30 Libra partners altogether have access to >1 billion users including direct access to the “last mile” which is already installed apps on smartphones.
  5. Adoption will be achieved very quickly, within months after starting in Q1 2020.
  6. Libra will, therefore, revolutionize the remittance market.
  7. There will be two tokens: one payment token (for payment) and one utility token (for discounts and other benefits to provide incentives).
  8. Governance of the Libra Association will not be done by Facebook alone but by a group of larger corporations, mostly US-based.
  9. In the mid-term, hundreds of millions of users will hold Libra tokens and potentially can exchange them at crypto exchanges. This could drive adoption of crypto assets such as Bitcoin.

Resources: Libra’s whitepaper, Calibra website.

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