Nutshell
Facebook has annouced that they are coming together with 27 organizations around the world to start the non-profit Libra Association and create a new currency called Libra.
Libra's mission is to create a simple global financial infrastructure that empowers billions of people around the world allowing them to easy for everyone to send and receive money.
Mostly aim for users who don't have access to traditional banks or financial services.
It's powered by blockchain technology and the plan is to launch it in 2020.
Usage
The aim is to make sending and receiving money as simple as sharing messages and photos.
It will be run on Libra Blockchain which will aim to serve as a solid foundation for financial services, including a new global currency, which could meet the daily financial needs of billions of people.
To enable this, Facebook is also launching an independent subsidiary called Calibra that will build services that let you send, spend and save Libra -- starting with a digital wallet that will be available in WhatsApp and Messenger and as a standalone app next year.
Tokens
Calibra will be regulated like other payment service providers. From the beginning, Calibra will let users to send Libra to almost anyone with a smartphone at low to no cost
Libra is designed to be a stable digital cryptocurrency that will be fully backed by a reserve of real assets — the Libra Reserve — and supported by a competitive network of exchanges buying and selling Libra.
Anyone with Libra has a high degree of assurance they can convert their digital currency into local fiat currency based on an exchange rate
It is governed by the Libra Association tasked with evolving the ecosystem.
Partners
In addition to Facebook efforts, many other companies will build their own services using Libra.
There are currently over 20 partners. Partnerships include payment companies like Mastercard, PayPal, PayU, Stripe and Visa, to popular services like Booking, eBay, Farfetch, Lyft, Spotify and Uber, to companies in the crypto space like Anchorage, Coinbase, Xapo, and Bison Trails.
This would mean that the Libra would potentially find plenty of application shortly after released.
Founding Members and serve as the network's initial validator node. To be such a node, an entity needs to make an investment of at least $10 million in the network through purchasing Libra Investment Tokens
Technicals
The Libra Blockchain adopted the BFT (Byzantine fault tolerance) approach (similar to NEO) by using the LibraBFT consensus protocol.
The Libra Blockchain is pseudonymous and allows users to hold one or more addresses that are not linked to their real-world identity.
Interest on the reserve assets will be used to cover the costs of the system, ensure low transaction fees, pay dividends to investors who provided capital to jumpstart the ecosystem
The association is the only party able to create (mint) and destroy (burn) Libra. Coins are only minted when authorized resellers have purchased those coins from the association with fiat assets to fully back the new coins. Coins are only burned when the authorized resellers sell Libra coin to the association in exchange for the underlying assets.
Other aspects
Calibra will have a dedicated team of experts in risk management focused on preventing people from using Calibra for fraudulent purposes. They'll provide fraud protection so if you lose your Libra coins, we'll offer refunds.
Any information users share with Calibra will be kept separate from information you share on Facebook.
Early preview of the Libra testnet is available under the Apache 2.0 Open Source License, with accompanying documentation.
They are also open sourcing the code for the Libra Blockchain and launching Libra’s initial testnet for developers to experiment with and build upon.
My verdict
Libra is super interesting since it's a first attempt to create a global currency by a giant corporation. It will be super interesting to see how governments react
It might be an amazing solution for countries where traditional banks or money sending apps are not available. There is definitely a market available there.
I personally wouldn't consider it a real cryptocurrency and would call it a first global fiat money released by a corporation.
I actually think Libra will be super positive project for crypto since it might act as a bridge to Bitcoin and other cryptos especially due to partnerships with Coinbase, Xapo and others.
My biggest concern is how much power it gives to Facebook (who is already more powerful than many countries)