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1.7 billion adults remain outside of the financial system.
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People with less money pay more for financial services. (remittances, wirecosts, overdraft, ATM charges, financial charges)
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We (Libra) believe that collaborating and innovating with the financial sector, including regulators and experts across a variety of industries, is the only way to ensure that a sustainable, secure and trusted framework underpins this new system.
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What Libra tries to achieve;
- More people to financial assets.
- Right to control the fruit of labor.
- global, instant movement of money.
- People will increasingly trust decentrailzed forms of govt.
- Global currency, financial infrastructure should be governed as a public good.
- uphold the inegrity of the current ecosystem (non-destructive)
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Libra is a global currency and financial infrastructure.
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Libra is backed by a reserve of aseets -> Intrinsic value.
- Bank deposits, short-term government securities for every libra that is created.
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Libra is governed by Libra Association.
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Value will remain stable.
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HQ in Geneva, Switzerland.
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Target launch first half of 2020. Target members 100.
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Star with permissioned blockchain. "ambition" is to become permissionless. Bottleneck, permissionless do not scale. Transition planned within 5 years of public launch of the libra.
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Permisonless or not, Libra Blockchain will be public.
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Move lang.
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Byzantine Fault Tolerant(BFT)
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Merkle trees, a data structure used by other blockchains that enables the detection of any changes to existing data.
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the Libra Blockchain is a single data structure that records the history of transactions and states over time.
- Q:: this is just a version controlled ledger? Not blockchain?
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pseudonymous. Libra wants to enhance privacy while considering conerns of regulartory impact.
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can convert their digital currency into local fiat currency based on an exchange rate
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the reserve assets are being chosen to minimize volatility. investment-grade credit rating to provide both security and decentralization of the assets.
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Q:: Digital portfolio with intrinsic stable value that can be sent instantly.
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Intereset on the reserve assets will be used to cover the costs of the system -> low trans fee, pay dividiends to Libra Association.
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Rules for allocating interest on the reserve will be set by Libra Association.
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Q:: Libra Association better be a good portfolio investor.
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Users/Devs of Libra do not receive a return from the reserve.
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All decisions are brought to the council, and major policy or technical decisions require the consent of two-thirds of the votes.
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Q:: If all decisions are done through Association, why would non-associates contribute to open source Libra code?
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Coins are only minted when authorized resellers have purchased those coins from the association with fiat assets to fully back the new coins.
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Coins are only burned when the authorized resellers sell Libra coin to the association in exchange for the underlying assets.
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Libra seems to me is a next level stable assets portfolio that is accessible by people with internet, which can be used as an currency in a country with unstable financial/political systems.
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Impact on current crypto market is like a impact of having more stable widely adopted USDT. i.e. positive.
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Initially, all stable assets will increase in value as more demand has been created through Libra.