Facebook as founding member of Libra Association released the Libra Coin white paper. The not-for-profit association consists of large organizations, from payments industry to technology industry, and marketplaces, from Telecom to Academics, NGOs and Venture Capital firms — 27 co-founding corporations like MasterCard, PayPal, VISA, Stripe, Spotify, eBay, Uber, Lyft, Vodafone, CoinBase, Xapo, Thrive Capital, USV and Women World Banking, just to name a few, join hands together for financial inclusion of billions of people, mission to launch and control Libra Coin over so-called Libra Blockchain.
Unlike Bitcoin, Libra’s value is tied to government-issued currency like the dollar. This isn’t a coin that you buy because you think it will grow 100 times as valuable. It’s more like exchanging a dollar for a Euro.
As per the information given on Libra White paper, assets run on open source Blockchain called Libra Blockchain and are used via relation to a reserve asset.
“Libra is fully backed by a reserve of real assets. A basket of bank deposits and short-term government securities will be held in the Libra Reserve for every Libra that is created, building trust in its intrinsic value. The Libra Reserve will be administered with the objective of preserving the value of Libra over time.”
Libra Coin is a stable coin backed by basket of currencies and securities. If we see, Libra White Paper clearly stated that Libra is a centralized currency but posing it as a cryptocurrency, in the world of cryptocurrencies and market of dominating Bitcoin, decentralization is the cornerstone of Blockchain technology, which is totally absent in Libra Coin. The type of Blockchain is permissioned, only association members are able to join the network, to add nodes, validate transaction, mint and destroy Libra Coin. This is very unacceptable in the cryptocurrency industry that a few people or organizations control the financial future of billions of people. This is not the vision of Satoshi Nakamoto.