A Closer Look at Facebook’s Libra and Calibra

Joining us on this episode are ARK analysts Yassine Elmandjra and Max Friedrich. Today we talk about the headlines that Facebook has made in recent months, particularly in relation to their plan to launch their own cryptocurrency in 2020. We discuss what Libra is and how it will be governed, what the role of the Libra Association will be and how it will be different to other cryptocurrencies like Bitcoin. It seems as though Bitcoin managed to establish itself before any regulatory measures could intervene, but will Libra be given the same opportunity? Yassine and Max share the governmental responses there have been to Libra and how different markets are likely to react. They share their ideas around why Facebook might have introduced this new dimension in their company and about the function of Calibra as a digital wallet. For all of this and more, be sure to join us! Key Points From This Episode: More about Facebook’s cryptocurrency: what it is, founding members and how it’s governed What the Libra Association will be responsible for and what its mission entails The areas in which we believe bitcoin succeeded and failed to succeed in Where Libra fits into the other blockchains and coins available on the market The two primary record keeping models: unspent transaction output and account based How, after failing to act against Bitcoin, the regulatory environment is responding to Libra Weighing up the success of payment platforms initiated by Facebook and WeChat Why governments in emerging markets likely don’t want Libra The relationship between Libra and Calibra and the possibility of competing wallets Predictions for the rollout of Facebook’s cryptocurrency   Tweetables: “They basically found someone to point a finger to and that’s Facebook. With Bitcoin, it’s like, who do you point the finger to?” —@yassineARK [0:14:17] “They are not trying to gain control of this new money that they are creating. What they are trying to do is to be the primary interface to this new pile of money through their Calibra wallet.” — @jwangARK [0:22:46]