LIBRA – A Differentiated View on Facebook’s Virtual Currency Project

23 Pages Posted: 8 Nov 2019

See all articles by Volker Brühl

Volker Brühl

Center for Financial Studies (CFS)

Date Written: October 29, 2019

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 form a commercial, regulatory and monetary policy perspective.

JEL Classification: E42, E52, G20

Suggested Citation

Brühl, Volker, LIBRA – A Differentiated View on Facebook’s Virtual Currency Project (October 29, 2019). CFS Working Paper, No. 633, 2019. Available at SSRN: https://ssrn.com/abstract=3477599 or http://dx.doi.org/10.2139/ssrn.3477599

Volker Brühl (Contact Author)

Center for Financial Studies (CFS) ( email )

Grüneburgplatz 1
Frankfurt am Main, 60323
Germany

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