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Stable Coins Forum / How Libra is different from other Stable Coins?
« on: June 21, 2019, 07:09:23 AM »
Stable coins like Tether, TUSD, USDC, PAXOS, and others are pegged to a single fiat currency. But in case of Libra, it is not pegged to a single fiat currency, but backed by a basket of assets denominated across 4 fiat currencies: USD, EURO, GBP and JPY.
Libra will be backed by a fiat currency if the following standards set by the Libra Reserve are met:
#1 Only fiat currencies with a free float will be eligible while the ones that are soft-pegged would be redundant in the Libra reserve.
#2 The decision-making process should be tied to either public organisations like Central banks or a free accessible asset like commodities.
#3 The fiat assets must be universally recognized across various jurisdictions to have a pro-grammatically quotable value.
Libra will be backed by a fiat currency if the following standards set by the Libra Reserve are met:
#1 Only fiat currencies with a free float will be eligible while the ones that are soft-pegged would be redundant in the Libra reserve.
#2 The decision-making process should be tied to either public organisations like Central banks or a free accessible asset like commodities.
#3 The fiat assets must be universally recognized across various jurisdictions to have a pro-grammatically quotable value.