What Is Libra?

Introduction

Announced in June 2019 as the culmination of more than a year of research, Facebook’s Libra project is an attempt to bring blockchain-based technology to its users globally. It is ambitious, another brash effort from a company not unknown for controversy, especially of late. But what is it exactly?

This pioneering cryptocurrency project involves a broad consortium of nonprofits and organizations in areas such as payments and technology coming together to rethink digital finance. But what does it mean for the average person using financial services? Could Libra improve these services for those with limited or no access? How might it impact the global finance and technology sectors? This report takes a look at the promises being made and the challenges Facebook and its Libra stakeholders are taking on as the project prepares to launch in 2020.

Born from Cryptocurrency

Building on underlying technology introduced by Bitcoin and subsequent other cryptocurrency projects, Libra’s impact could have huge implications for technology, finance, and consumer banking. Bitcoin, announced in early 2009, has changed the way many think about internet-based value. Facebook’s Libra project is based on a number of concepts from Bitcoin and other blockchain implementations—particularly Ethereum, which has a fairly loyal following. Many developers working in the Ethereum ecosystem may find opportunities to build on Libra.

Much of what Libra proposes isn’t new technologically. ...