Can Libra Repeat The History Of Bretton Woods?

The coexistence between cryptocurrencies and national Fiat currencies.

In this story, I’m going to discuss Libra which is the new Facebook private currency just announced by the giant of the digital economy: Facebook. By reading the white paper of Libra, the mission is «to enable a simple global currency and financial infrastructure that empowers billions of people.»

My Initial understanding of this new cryptocurrency is that Facebook (Fb) is going to expand the activities well beyond its global digital advertising business, that is almost 98% of its revenues. Simply, Fb is planning to monetize the messaging services like WhatsApp and Messenger already used by 1.5 billion people. Thanks to this innovation, we can predict that can become the most massive e-commerce and payment tool in the world and it might compete with Banks as a new global digital currency in competition with Fiat money.

In a sense, it could become a sovereign global coin.

Although the project seems very interesting to reach a decentralized financial system, many issues arose about this project.