Libra’s Unresolved Puzzles
Ever since Mark Zuckerberg announced Facebook would sponsor a new cryptocurrency, both the government and the general public have tried to understand it’s structure and purpose. Is it another Bitcoin or another Tether? An article posted at Seeking Alpha recently provided an informative overview. You can read the long and detailed article at the home site but a summary of the main points are;
Libra appears “to be like a mutual funds share, redeemable (by authorized resellers, not by the public directly) at the net asset value of a low-risk mutual fund diversified across several fiat currencies”.
“The public can buy and sell Libra “coins” in exchange for existing fiat money.”
“Unlike an ordinary mutual fund, which allows members of the public to buy shares directly and sell them directly back to the fund at their current net asset value, Libra only allows Resellers to interact directly with the Libra Reserve.”
The question remains whether given Facebook’s past record with transparency, if you trust your funds with them. Reading the longer explanation of Libra’s purpose may help you with that decision. Go here to continue reading; Libra’s Unresolved Puzzles.