Facebook’s Libra Coin: Initial Reactions Mixed
Summary of the first reactions on Facebook’s Libra.
Before taking a look at responses across the cryptosphere, let’s have a quick recap of the Facebook proposal.
The Libra coin proposal
Libra is designed to be a global currency that aims to simplify cross-border micropayments and remittances enabled by its own blockchain, the Libra Blockchain. As excerpt from the white paper reads:
“Just as people can use their phones to message friends anywhere in the world today, with Libra, the same can be done with money — instantly, securely and at low cost.”
In actuality, there will be released two coins: Libra and the Libra Investment Token.
Libra is designed to be a stablecoin backed by a reserve of low-risk assets, where the price will be determined by the value of the fund as a ratio relative to the circulating supply.
Money raised from the sale of the Libra Investment Token will be invested in yet more low-risk assets, and the revenue generated will go toward supporting the Libra Association.
The Libra Association will be made up of tech companies, payment gateways and VCs, which will secure the network and pay a hefty fee (that converts into the Libra Investment Token) for the right to do so.
The assets will be held in the Calibra Wallet, which will work either as an independent app or as part of Facebook Messenger or WhatsApp.
The Libra Association released a brief document, which outlines the direction and philosophy of the governance model through a series of quotes from participating constitutes of the body. It included a comment from David Marcus, the former president of