Facebook’s Libra: Project Syndicate

Corporations are increasingly eager to resume control over traditional government responsibilities. The latest example: Facebook released a white paper on plans to develop a borderless cryptocurrency system with a group of central banks, regulators and 27 partner companies. Facebook along with Uber, Lyft, Visa, PayPal, Mastercard, eBay, and other firms – but not commercial banks – are negotiating a charter for the independent, nonprofit Libra Association to oversee the currency. Each member would contribute at least $10 million. Central bank involvement could require liquidity in the event of a crash, warns Katharina Pistor for Project Syndicate, adding such an event involving Facebook’s billion-plus users could require a larger rescue than the run on money market funds during the 2008 global debt crisis. Pistor urges governments to stop Facebook’s Libra plans before 2020 launch – or prepare to detail how they might handle an insolvency. Project Syndicate editors point out in the subhead that the social media company that profited from users’ private data cannot be trusted to manage a large, experimental currency that wields influence over global markets. Other currency challenges: Facebook has struggled with providing transparency on its processes or removing false posts on its own site. – YaleGlobal

Facebook’s Libra: Project Syndicate

With a track record of disregarding privacy and profiting from user data, Facebook unveils a cryptocurrency/payment system that could disrupt the global economy
Katharina Pistor
Monday, June 24, 2019

Facebook Libra white paper goalsRead the article from Project Syndicate  about Facebook's Libra currency project.

Facebook hosts a closed group on the Facebook Libra Coin Cryptocurrency.

Read about Libra from Facebook:

Excepts from the Libra White Paper:

“All over the world, people with less money pay more for financial services. Hard-earned income is eroded by fees, from remittances and wire costs to overdraft and ATM charges.”

“The assets in the Libra Reserve will be held by a geographically distributed network of custodians with investment-grade credit rating to provide both security and decentralization of the assets.”

“An important objective of the Libra Association is to move toward increasing decentralization over time. This decentralization ensures that there are low barriers to entry for both building on and using the network and improves the Libra ecosystem’s resilience over the long term. As discussed above, the association will develop a path toward permissionless governance and consensus on the Libra network.”

“’Move’ is a new programming language for implementing custom transaction logic and “smart contracts” on the Libra Blockchain. Because of Libra’s goal to one day serve billions of people, Move is designed with safety and security as the highest priorities. Move takes insights from security incidents that have happened with smart contracts to date and creates a language that makes it inherently easier to write code that fulfills the author’s intent, thereby lessening the risk of unintended bugs or security incidents. Specifically, Move is designed to prevent assets from being cloned.”

“If you are a researcher or protocol developer, an early preview of the Libra testnet is available under the Apache 2.0 Open Source License, with accompanying documentation. This is just the start of the process, and the testnet is still an early prototype under development, but you can read, build, and provide feedback right away.”

“The association will work with the global community in the coming months and continue to partner with policymakers worldwide to further the mission.”

© Project Syndicate - 2019

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