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Libra — A Differentiated View on Facebook’s Virtual Currency Project

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Abstract

Libra — a global virtual currency project initiated by Facebook — has been the subject of many controversial discussions since its announcement in June 2019. This paper provides a differentiated view on Libra, recognising that different development scenarios of Libra are conceivable. Libra could serve purely as an alternative payment system in combination with a dedicated payment token, the Libra coin. Alternatively, the Libra project could develop into a broader financial infrastructure for advanced financial services such as savings and loan products operating on the Libra Blockchain. Based on a comparison of the Libra architecture with other cryptocurrencies, the opportunities and challenges for the development of the respective Libra ecosystems are investigated from a commercial, regulatory and monetary policy perspective.

Funding

Open Access funding provided by ZBW — Leibniz Information Centre for Economics.

Author information

Correspondence to Volker Brühl.

Additional information

Volker Brühl, Center for Financial Studies, Frankfurt, Germany.

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Brühl, V. Libra — A Differentiated View on Facebook’s Virtual Currency Project. Intereconomics 55, 54–61 (2020). https://doi.org/10.1007/s10272-020-0869-1

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