I know all cryptocurrency sites have written at least 2-3 Libra-posts and all analysts said their opinion about Facebook’s future stablecoin. But, there are some tasks you better make yourself. “Make your homework” – and you, only you will be responsible for wins or losses. That’s because I decided to read the Libra’s White Paper myself.

What is this “cryptocurrency” – if it is one? Let’s see the document line for line (highlights by me):

Finally, mass adoption?

Libra’s mission is to enable a simple global currency and
financial infrastructure that empowers billions of people.

They want to bring this technology to so many people as they can. That should be good news for the whole crypto world, they want clearly a broad, mass adoption. And, it should be “simple” – the masses don’t understand very complicated systems. (Like “Steem+Steem Backed Dollar+Steem Units+Steem Power+Mvests”, sorry.)

a new decentralized blockchain, a low-volatility cryptocurrency, and a smart contract platform

Decentralized. I think the question surges: what can we call decentralized? The system with 100 witnesses is decentralized? I would say so. And a system with 20 witnesses? Perhaps. And with 10? I think we will see who will have the control in reality. In the beginning, Libra will have less witness-like actors, but they want to grow their number to 100 in the long term.
Low volatility. Many economists are blaming Bitcoin and other cryptos for its high volatility. You receive 1000 dollars in cryptos and tomorrow, it is perhaps only 900 dollars worth? That is not a game for everyone. So, low-volatility cryptos, stablecoins can be really a good idea.
Smart contract platform. A huge deal. It seems to be that Libra won’t be only a paying service like Paypal, it aims also the role of many second-generation cryptos providing smart contract abilities. They have also their own programming language for this, the “Move”.

Lobby power?

create a new opportunity for responsible financial services innovation (…) We believe that collaborating and innovating with the financial sector, including regulators and experts (…) is the only way

I think “responsible” in this context can mean: We make an agreement with the authorities and want to make all moves legal. Some analysts are saying Facebook with its multi-billion dollar weight, has good lobbyist capabilities. It may be able to achieve the regulation necessary for the crypto world.

“Experts” means here, other multinational companies. One huge company, actually, is often larger than the GDP of some small European state already. Many multinationals together can have more capital than the economy of Spain, Netherlands or Italy.

Banking the unbanked

In the next part, the white paper describes the well-known situation: The internet brought incredible cheap and broad information supply, but the financial system has not evolved very much:

1.7 billion adults globally remain outside of the financial system with no access to a traditional bank, even though one billion have a mobile phone and nearly half a billion have internet access.

No real news here, but it is very interesting to read the sentences like this in a paper of giant companies. Earlier, only small cryptocurrency or fintech startups were talking about this. But I would say: Facebook is talking too much about banking fees and loans in poor societies. Very probably the company wants a big share of this market some day. Lowering the costs for the user, but ruining many banks, I suppose. Facebook as a lender? Oops! Sounds bad for me.

Disrupting the disruptors?

Mass-market usage of existing blockchains and cryptocurrencies has been hindered by their volatility and lack of scalability, which have, so far, made them poor stores of value and mediums of exchange.

Seemingly Facebook also wants to correct the failures of existing cryptocurrencies, like the volatility mentioned above or the bottleneck problems. (Do you remember the 20+ USD Bitcoin fees of December 2017?) That is not very good news for cryptos, that’s because many analysts are asking: means Libra the end of Bitcoin?

Is there a God? Now, yes.

If you believe Facebook is dreaming in small sizes, don’t do that. If you think I stretched my fantasy thinking Facebook will be a lender, don’t think so. Read this:

We believe that a global currency and financial infrastructure should be designed and governed as a public good.

Designed by Facebook, I suppose. Clearly, they, Facebook and its allies, want to make THE global currency and THE global financial infrastructure. Another detail: Facebook’s currency was called, until the last days or weeks, “GlobalCoin”. This also indicates the Facebook-led consortium of multinational companies is striving for global financial leadership. I hate this idea.

Save Our Souls! (S. O. S.)
(I come back with a second part, soon.)

(Cover photo: Pixabay.com, Warhol-style effect picture: Own work.)