Happy Thursday, Blockfolians
When Libra was announced last summer, one of the most disruptive elements was that it was based on a basket of currencies, rather than pegged to a single currency. In this way, it echoed Keynes original failed idea for a supranational global reserve currency (which he called a ‘bancor’ - see where the name came from?) in the Bretton Woods system. Unsurprisingly, world governments (in particular the USA) did not like this plan.
Today, Libra made it official that they would be ditching the basket of currencies approach. Instead, they’ll focus on individual stablecoins pegged to existing fiat.
One outcome of the shift may be that Libra is in a position to capture business arising from governments that want private help building central bank digital currencies.
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CoinDesk @CoinDeskOPINION: "Something as complex and worthy of the US dollar’s global importance should not be cobbled together in a crisis. Getting it right will take time," says @giancarloMKTS. https://t.co/sX9IZmSIBR
A Really Big Number We Should Be Paying Attention To
That’s new investment into Grayscale last quarter. Yowza!