Let’s Give You an Overview of Libra!
Libra is the latest among the cryptocurrencies built on the blockchain with its own proof of stake protocol. It is backed by its reserve containing a basket of low volatile assets.
So, What does Low Volatility Do?
Though not designed as a Stablecoin in crypto-terms i.e. pegging against single fiat currency, Libra is pegged to four relatively steady currencies such as US Dollar(USD), Pounds(GBP), Euro(EUR) and Yen (JPY).
Assets on LibraThere are three key elements Libra is looking into for inclusion of assets into their basket :
- Fiat with free float and not tied/soft-pegged to any other currency
- Assets must be recognized by public institutions(Fiat Currency) or freely accessible(commodities)
- Universal recognition of the assets with a programmatically quotable value