Today (June 18), Facebook opened the Libra payment network’s website. White paper of the cryptocurrency is already available for download; a test launch period has begun. In addition, it became known that the official version of Libra would be available in early 2020.
Libra Cryptocurrency: Description
Facebook intends to release the Libra international cryptocurrency and launch the payment network of the same name in the beginning of 2020. The testing period began today.
According to the statements, the developers will collect information from users, as well as refine and improve the future payment network.
According to the developers’ statements, the project was created because the world really needed a reliable digital currency and infrastructure, which together can ensure the functioning of money on the Internet. As stated in the press release, the mission of Libra is to create a simple global monetary and financial infrastructure that will expand the capabilities of billions of people.
Among the main declared characteristics of the future payment network, it is indicated that:
- It operates on the basis of a highly scalable, secure, and reliable blockchainBlockchain
is a continuous and sequential block chain of information (digital linked list). When building a blockchain, copies of related blocks are simultaneously stored on multiple computers.Details.
- It will not be volatile, as it is backed up by reserve assets intended to give it intrinsic value.
- The cryptocurrency will be regulated by the so-called "Libra Association," which will develop and maintain the ecosystem of the payment network.
In addition, the site states that the new cryptocurrency will work on the Libra open-source blockchain of the same name. The blockchain was created from scratch to provide the most appropriate parameters and priorities for scalability, security, storage efficiency, throughput, and future adaptability. The Libra blockchain technical document can be found here.
Speaking about the blockchain of the new cryptocurrency in more detail, it was written and developed with the use of the Move programming language for the implementation of user transactionTransaction
– is a financial term that means a logically meaningful operation that can only be carried out completely. Details logic and smart contracts. The blockchain system will be built on the "Byzantine approach" to fault tolerance, BFT.
Support of the Libra Cryptocurrency
According to the information on the site, Libra tokens are fully provided with a reserve of real assets, unlike most cryptocurrencies. A basket of bank deposits and short-term government securities will be stored in the Libra Reserve, which developers believe should strengthen confidence in the intrinsic value of the asset.
In this case, the actual assets will be a combination of assets with low volatilityVolatility
– is a financial term that means a statistical indicator of price change. In the cryptocurrency world, it is used by traders as an indicator for managing financial risks. That is, it is a measure of trade risk and as a financial analytical tool for gambling. Details, including bank deposits and government securities in currencies from stable and reputable central banks. Since the price of Libra will be associated with a basket of supporting currencies, volatility will occur only in case there are fluctuations in the price of supporting assets.
According to the press release statements, the backup support structure is designed to mitigate the likelihood and severity of price fluctuations (especially in the negative direction).
The founders of the asset say that the cryptocurrency can remain stable even in the context of the global financial crisis. To support sustainability, more than 20 types of fiat money and securities from different countries will be collected in the reserve.
Interesting in the section: Features of fiat money
The fact sheet also states that developers will rely on short-term securities for asset liquidityLiquidity
– is a term that means the ability to sell any financial assets (below or above the market price). The term “liquidity” in Latin means “liquid”, “flowing”.Details. At the same time, several "state governments" were chosen for the crypto asset to rely on.
Libra’s legal and regulatory environment and cooperation with financial regulators
Libra’s developers say that they intend to deal with possible vulnerabilities for consumers. For this reason, a regulatory framework will be developed in the ecosystem of a new cryptocurrency. It must comply with the conditions of financial regulators in most countries of the world.
Libra Association and members of the cryptocurrency consortium will handle the development of legal regulations. The press release states that the members of the Association will rely on all legal and financial requirements "offered in the jurisdiction" of cryptocurrency. It is also said that these norms will concern only the principles of coin storage, its placement on stock exchanges, and the principles of exchange.
In addition, the developers reported that they were going to cooperate with law enforcement agencies to regulate cryptocurrency.
Libra Association: Places that will accept cryptocurrency
According to the press release, members of the Libra Association will be "geographically distributed and diverse enterprises, non-profit and multilateral organizations," and academic institutions.
Now, the following establishments cooperate with the project and help it:
- Payment services: Mastercard, PayPal, PayU (Naspers’ fintech), Stripe, and Visa.
– is an economic term that means the process of independent trade, independent analysis of the market and the conclusion of trade transactions.Details platforms: Booking Holdings, eBay, Facebook/Calibra, Farfetch, Lyft, Mercado Pago, Spotify AB, Uber Technologies, Inc.
- Telecommunication companies: Iliad, Vodafone Group.
- Blockchain companies: Anchorage, Bison Trails, Coinbase, Inc., Xapo Holdings Limited.
- Venture capital firms: Andreessen, Horowitz.
- Commercial initiatives: Ribbit Capital, Thrive Capital.
The main member of the Libra Association is Facebook, a company that played the main role in the creation and development of the payment network. The developer company in the Association is represented by its subsidiary Calibra; it owns the lion’s share of the votes. More details about the partners of the cryptocurrency project here.
The official launch of Libra cryptocurrency and the goals of the project
The official launch of Libra cryptocurrency is scheduled for early 2020. Until that time, developers will test the network and increase the number of potential partners. According to the information, the data on the Libra website will be constantly updated so that everyone can see the progress of the project. In addition, as we already wrote above, the company opened the source code for Libra Blockchain and launched the initial Libra test network.
The press release also asserts that in the next few months, developers will collect feedback on the prototype of the Libra Blockchain and create the API documentation. It is still unknown who will become the managing director of the project. According to the information on the site, he has not yet been hired.
Facebook has created the official website for Libra cryptocurrency. Let us remind you that we have already written about the entrance of Uber, PayPal, Mastercard, Visa, and Booking.com into the Association.
Editor: Godfrid Brower