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:
- Libra will not be pegged to the USD or another traditional currency; it will be a basket, therefore, be “money”, but not a “currency”.
- Libra will therefore not target the enterprise payment sector.
- Libra targets hundreds of millions of users in developing/emerging countries.
- 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.
- Adoption will be achieved very quickly, within months after starting in Q1 2020.
- Libra will, therefore, revolutionize the remittance market.
- There will be two tokens: one payment token (for payment) and one utility token (for discounts and other benefits to provide incentives).
- Governance of the Libra Association will not be done by Facebook alone but by a group of larger corporations, mostly US-based.
- 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.
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:
Resources: Libra’s whitepaper, Calibra website.
Share this:
Related posts
Actively Managed Crypto Investments: How to combine cryptocurrencies with traditional assets
Read more
New Frankfurt School Blockchain Center Research Paper on Libra vs. CBDC: European banks might be heavily affected
Read more
New Frankfurt School Blockchain Center Publication on Central Bank Digital Currencies
Read more