Facebook Libra and the

Denationalization of
Money
Who am I?

◦ Tito Titov
◦ Bachelor in Computer Science
◦ Master of Business Administration
◦ Blockchain and Crypto enthusiast
◦ CEO of WeiDex
◦ The youngest member of Cobden Partners
 Contents

What is blockchain? Libra

• Bitcoin • Libra whitepaper overview
• Ethereum • What is Libra and What It is
• Decentralized Finance not?
Blockchain
Bitcoin
HISTORY OF BITCOIN
 When Bitcoin was born?

Bitcoin was invented in 2008 Started in 2009 Bitcoin is a decentralized

by an unknown person Digital Currency
 Bitcoin Whitepaper

Electronic payment
system based on Proof-of-Work
Transactions Timestamp Server
cryptographic proof (Miners)
instead of trust
 Bitcoin Whitepaper

NETWORK INCENTIVE SIMPLIFIED PAYMENT PRIVACY

VERIFICATION
 Bitcoin as new monetary system

TOO SLOW TRANSACTIONS TOO DECENTRALIZED

 Bitcoin as Store of Value

CAPPED SUPPLY TO 21 SECURE AND

MILLION PERMISSIONLESS
ETHEREUM
Second generation blockchain
 Code on the blockchain

Immutable
Ethereum Smart
Contracts
Open source

Secure and decentralized

INITIAL COIN
OFFERING
BALLOON
2017
Decentralized Finance
◦ Collection of ideas to reshape banking, lending, and
derivatives. As with bitcoin, the key is removing the
middlemen.
 Decentralized and Centralized Stable Coins

USDC – USDT – DAI –

Centralized Centralized decentralized
fiat backed fiat backed ETH backed
Facebook’s Libra
 Libra’s mission is to enable a simple global
Libra Mission currency and financial infrastructure that
empowers billions of people.
 ◦ 1.7 billion adults globally remain outside of
Libra Problem the financial system with no access to a
traditional bank, even though one billion
Statement have a mobile phone and nearly half a
billion have internet access.
 Libra the opportunity

Global currency and

More people should
Global, open, instant, financial infrastructure
have access to financial
and low-cost should be designed
services and to cheap
movement of money and governed as a
capital.
public good.
 ◦ It is built on a secure, scalable, and reliable
Libra blockchain

according to ◦ It is backed by a reserve of assets

◦ It is governed by the independent Libra
Facebook Association tasked with evolving the
ecosystem
Libra Blockchain

ABLE TO SCALE TO BILLIONS OF

ACCOUNTS

HIGHLY SECURE, TO ENSURE

SAFETY OF FUNDS

FLEXIBLE, SO IT CAN POWER

THE LIBRA ECOSYSTEM’S
GOVERNANCE
 Libra currency and reserves

Backed by a Network of
Stable digital
reserve of real exchanges buying
cryptocurrency
assets and selling Libra
 GOVERNING ENTITY THAT IS NOT-FOR-PROFIT MEMBERSHIP
COMPRISED OF DIVERSE AND ORGANIZATION,
INDEPENDENT MEMBERS HEADQUARTERED IN GENEVA,
SWITZERLAND

Libra Association

INCENTIVES TO FOUNDING
MEMBERS
 Technical improvements

Establishment of geographically
distributed and regulated group of
Future of libra global institutional custodians for
the reserve

Grow the Libra Association Council

to around 100 geographically
distributed and diverse members
 WHAT IS LIBRA
AND WHAT IT IS
NOT?
 Centralized vs Decentralized

Facebook is only one of the members, but owns Libra uses the blockchain technology, but only a
the whole userbase and controls the codebase few selected members and their nodes can
govern the network
 Public vs ◦ Libra is permissioned blockchain

Private
◦ Libra blockchain can be censored
◦ Libra is not fully transparent
blockchain
◦ Libra cannot be a global currency, because
the governments will not allow it
◦ Libra is centralized and could be censored
◦ Libra is a double-edged sword
My Final
◦ It will be many attempts for Libra like
Thoughts
digital currencies in the following years