Libra cryptocurrency: dare you trust Facebook with your money? John Naughton

Now it turns out that the rumours were true. Last week, Facebook unveiled its crypto plans in a white paper. It’s called Libra and it is a cryptocurrency, that is to say, “a digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions, control the creation of additional units and verify the transfer of assets”.

Like bitcoin, then? Er, not exactly. Like bitcoin, Libra does use blockchain technology, but thereafter the two currencies part company. Whereas the value of bitcoin oscillates like Boris Johnson’s promises, Libra is supposed to be a low-volatility currency that will let its users buy things or send money to people with very low fees. It will be backed by reserves managed by a nonprofit organisation,called the Libra Association, which gives the token real-world value and oversees the governance of the blockchain technology that powers it.

https://www.theguardian.com/commentisfree/2019/jun/23/libra-cryptocurrency-dare-you-trust-facebook-with-your-money

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