Social media behemoth Facebook has revealed the white paper of its cryptocurrency and blockchain based financial infrastructure project on June 18.
According to the white paper, Facebook’s global stablecoin, called “libra,” will work on its own scalable libra blockchain, and it will be backed by a reserve of assets “designed to give it intrinsic value” and mitigate volatility fluctuations. These assets will be composed of bank deposits and short-term government securities. And all the assets will be held in the Libra Reserve for every Libra that is issued in the market.
Libra stablecoin will be governed by a not-for-profit organisation Switzerland-based consortium, the Libra Association. And the founding members of this association are Mastercard, PayPal, Visa, Stripe, eBay, Coinbase, Andreessen Horowitz and Uber and more.. Facebook is planning to expand the association to around 100 members by the time of coin launch in the first half of 2020. The white paper also expressed that:
“While final decision-making authority rests with the association, Facebook is expected to maintain a leadership role through 2019. Facebook created Calibra, a regulated subsidiary, to ensure separation between social and financial data and to build and operate services on its behalf on top of the Libra network.”
Facebook has also revealed the release of the Libra Investment Token, which can be purchased or distributed as dividends to the association’s founding members and accredited investors.
Disclaimer & Suggestion : Please always do your due diligence before investing in any cryptocurrency or project. This should not be treated as financial advice.