While Libra is considered to be a cryptocurrency, it is a stable coin. The only thing common between Libra and cryptocurrency is that both of them function on a blockchain.

“Abasket of bank deposits and short-termgovernment securities” back thestable coins. It is more like an ETFthan a stable coin, which is backed by fiat.

Elizabeth Baird, SEC Deputy Directorwas asked about stable coins and she gave a blunt reply stating, “I thinkthey’re securities.”

Valerie Szczepanik, SEC’s head of digitalassets stated, that the stable coins “does not have an expectation ofprofits.” He further felt that it doesnot matter.

Libra investment token is differentfrom Libra Coin, and it is hoped that the Facebook will become the de factopayment mechanism for the whole of the world.

The white paper states, “Libra’smission is to enable a simple global currency and financial infrastructure thatempowers billions of people.” Glossing over the unrealistically aspirationalqualification of “simple” (really??), can we use a security as a “currency”?

It is the desire of even the most lawabiding citizen to keep away from taxes. Using securities as a payment mechanism will come up with lot ofpotential use cases. When it comes to using securities as a payment this mightnot be an issue for the institutions because they will have back offices whoare competent in handling them.

Despite the faults and features, Librais a step forward in financial innovation. The entrepreneurial world has beenwaiting for solutions, which will push the conversation of systems that reducepayment friction forward. While this isnot he complete solution that they have been looking for; however, thissolution is moving the process the next phase.

Most of the inventions are not beingused for their original intentions. Thismight also be the case with Libra. Thisinnovation will sure improve the adoption and awareness of the development ofcryptocurrencies as small as TCAT tokens in a broad manner. Though it might be a lot different than whatthe designers originally anticipated.

Cryptocurrency is coming across greatest levels of institutionalgrowth. “Exchanges are changing theirfocus from retail traders to institutional traders, providing such customersbetter ability to customize the front end of their trading platforms andproviding APIs that better suit what institutional traders are used to.”

So, all of these have amplified the discussion among regulatorsconcerning the “cryptocurrency issue.”