On June 19, Facebook announced plans to launch a new digital
currency, Libra, which will allow users to make online payments via
digital wallets as soon as early next year. The user experience is
simple – exchange a local currency for Libra through an app
and spend or transfer Libras like ordinary money, with low
transaction fees. With powerful co-founders like Visa, PayPal and
Uber in the “Libra Association,” users can expect many
big merchants to accept Libra.
Libra differs from Bitcoin in various ways – one of which
is its stability. Bitcoin runs on a decentralized network and
fluctuates significantly. Even though it is implemented on a
“blockchain” (which is structurally decentralized),
Libra will nevertheless be governed by a central authority –
as a so-called “permissioned chain.” Furthermore, it
will be anchored by a basket of stable currencies. Facebook has put
together the Libra Association, a not-for-profit group, to oversee
Libra. The Association consists
