The New Libra Blockchain and Cryptocurrency
It has been widely announced that a new Libra Blockchain and Cryptocurrency will be launched in the first half of 2020.
As a professional financial advisory, the adoption of new financial technology creates a bit of a catch-22. On the one hand, we want our clients to be on the forefront of the financial world and all that is progressing and to profit from it. On the other hand, we have a fiduciary responsibility as stewards to our clients and their assets and adopting new technologies does expose risk.
Back in the late 1990s and early 2000s, Napster was all the rage. Napster freed music and created a new paradigm for song sharing, unsettling the music industry and upsetting the powers-that-be. Eventually, Apple came along and started i-Tunes, a service very similar to Napster but backed by corporate power. Fast forward about a decade and witness the rise of Bitcoin with a paradigm shifting upsetting of the financial status quo. We see the same essential pattern emerging with the Libra Association. Could the Libra Association be the i-Tunes of cryptocurrency? It is certainly worth keeping an eye on.
You can view the Libra whitepaper here.
A few interesting excerpts:
We believe that the world needs a global, digitally native currency that brings together the attributes of the world’s best currencies: stability, low inflation, wide global acceptance, and fungibility. The Libra currency is designed to help with these global needs, aiming to expand how money works for more people around the world.
The goal of the Libra Blockchain is to serve as a solid foundation for financial services, including a new global currency, which could meet the daily financial needs of billions of people. Through the process of evaluating existing options, we decided to build a new blockchain based on these three requirements:
Able to scale to billions of accounts, which requires high transaction throughput, low latency, and an efficient, high-capacity storage system.
Highly secure, to ensure safety of funds and financial data.
Flexible, so it can power the Libra ecosystem’s governance as well as future innovation in financial services.
This is the goal for Libra: A stable currency built on a secure and stable open-source blockchain, backed by a reserve of real assets, and governed by an independent association. Our hope is to create more access to better, cheaper, and open financial services.
For more on the reserve policy and the details of the Libra currency, please read here.
I am sure we will be hearing more from the Association about the new Libra Blockchain and Cryptocurrency over the coming years. We will be keeping our ears open.
Other Gibson Financial Group Blog Posts of Interest: Blockchain in Financial Services