2 Matching Annotations
  1. Jun 2019
    1. The association is the only party able to create (mint) and destroy (burn) Libra. Coins are only minted when authorized resellers have purchased those coins from the association with fiat assets to fully back the new coins. Coins are only burned when the authorized resellers sell Libra coin to the association in exchange for the underlying assets. Since authorized resellers will always be able to sell Libra coins to the reserve at a price equal to the value of the basket, the Libra Reserve acts as a “buyer of last resort.”

      Digital native coins like Ethereum are more advantageous due their less-trust-required nature. Libra Assoc.'s biggest challenge will be to earn trust and don't lose it.

    2. It is backed by a reserve of assets designed to give it intrinsic value;

      Libra is a basket of things which we can question their intrinsic values also. Libra will re-trigger "Intrinsic Value of MoE" discussions.