Libra is not just a stable coin

Recently, Facebook launch their Libra white paper, and plan to pave the road decentralized, digital identity financial inclusion world in Switzerland.

No matter who you are, where you live, what you do, or how much you have, the road to delivering this will be long, arduous, and won’t be achieved in isolation.

There are some key features:

1. Anyone can instantly, securely, and at low cost convert their local fiat currency into digital currency base on exchange rare for cross-border payment with libra coin.
2. Each libra coin is fully real asset-backed reserve.
3. Refine HotStuff BFT consensus voting by around 100 Libra Association Council, which is comprised of one representative per validator node.
4. All transactions are bought to the council, and require the consent of two-thirds of the votes.

Libra ETF

“Libra backed by bank deposits and government securities in currencies from stable and reputable central banks”.

Libra is not only use for global payment but also prepare for global bond market. The structure of Libra is analogous to the popular Exchange Traded Fund (ETF) model, where unit holders are entitled to the financial returns of a basket of financial assets. The units are tradable on exchanges and a select group of authorize participants are able to create and redeem units using the underlying assets.

Figure 1 — Size of the Top Bond ETFs Targeting US Investors — US$ Billion(Source: BitMEX Research, Bloomberg)

Libra real asset-backed reserve appears to be managed by the Libra Association, which consists of many entities in multiple industries across the globe. These same entities are responsible for issuing the ETF and the list of companies is set to expand further.