Facebook introduced the White paper of its cryptocurrency project Libra
The largest social network Facebook introduced the White book of its cryptocurrency project and it turned out that the stablecoin will be called Libra. In addition, another “investment token”will be issued.
The White paper of the project reports that the Libra cryptocurrency, built on its own scalable blockchain, will be available to the General public and will be used for various purposes, including payments and transfers. It will be managed by a separate Libra Association and will be provided with a whole basket of Fiat currencies, as well as securities and shares.
The Libra investment token will be recognized as a security, respectively, will be available to a much smaller audience — members of the Libra Association and accredited investors. At the same time, dividends and profits received from the basket of assets that provides the main stablecoin will be distributed among the holders of the investment token. Note that at the moment the exact composition of the basket is not defined.
“Since the assets in the reserve have a low level of risk and, accordingly, low profitability, the income for early investors will be realized only if the network is successful, and the reserve will increase significantly in size,” the White book of the project notes.
As previously reported, the company is planning to enter in the composition of the Libra Association, will have to pay at least $10 million in addition, they must meet one of several criteria to prove the belonging to the elite of the financial world. For example, if a company is on the Fortune 500 list, it may well participate in the Association. At the same time, the more funds the organization invests, the more weight its voice has in the Association.
Note that yesterday cryptocurrency critic Nouriel Roubini said that GlobalCoin (as it turned out, Libra), developed by the social network Facebook, can not be called a cryptocurrency.
Criticize the Facebook project and supporters of cryptocurrency. So, Andreas Antonopoulos said today that Libra will not be able to become a competitor for independent and decentralized cryptocurrencies, including bitcoin. Rather, it will compete with Central banks and traditional payment systems. And in this fight to win it will be difficult.