I posted my opinion on Facebook’s Libra to Evolutionary and Institutional Economics Review. You can read a full-text view-only version of my note by using this link. Abstract is as follows:
Facebook’s Libra intends to provide a financial infrastructure for the people living in the developing countries in which financial inclusion rates still fall low. Libra plans to stabilize the market by holding legal currencies as collateral. However, markets determine prices, and there is no guarantee that the prices can be controlled as intended. As long as a central authority holds legal currencies as collateral and issues the Libra, it cannot be a decentralized structure like bitcoin. Libra plans to move to a permissionless blockchain within 5 years, but no concrete steps have been proposed yet. Thus, it would be difficult for Libra to be realized and widely accepted as a world currency.