Page 50 - Understanding EOS TojuKaka FlipBook

Libra is a stable coin proposed by Facebook. A stable coin is a
cryptocurrency which is backed by fiat. Facebook announced
that Libra will be backed by a bucket of national currencies.
Due to Facebook’s large network, many fear that this new
currency would be a new global currency and compete with the
reserve currency of the world- the US Dollar.

Facebook did not dare to embark on the journey to
create Libra on its own. The reason is that Mark
Zuckerberg is probably well aware that people will
never trust a centralized system or entity such as
Facebook to build a global currency which would
have a significant impact on the global economy. But
people may trust a decentralized autonomous
collective of the most successful companies in the
world.

So this is what Facebook did. They created the
independent Libra association and invited big names
like Paypal, Visa, Mastercard, eBay, etc., to oversee the
activities of Libra. What Facebook was trying to do
was to decentralize the control of Libra so that
people would trust it.

This Libra association is not controlled by Facebook.

50