# Libra Whitepaper * making traditional finance systems programmable, interoperable, upgradeable ## Updated (April 2020) whitepaper has more on: * single-currency stablecoins in addition to multi-currency coin * multicurrency LBR could interfere with monetary sovereignty and monetary policy * adding LibraUSD, LibraEUR, LibraGBP, and LibraSGD * LBR is a "digital composite of some of the single-currency stablecoins on Libra network." (defined in fixed nominal weights, e.g. SDR that's maintained by IMF) * LBR will be used as efficient cross-border settlement coin + neutral, low-volatility option for those that don't have stablecoin on network yet * method provides a method for the integration of central bank digital currencies * more safety through compliance framework * want to ensure Anti-Money Laundering, and Combating the Financing of Terrorism, sanctions compliance, prevention of illicit activities * will establish a FIU (Financial Intelligence Function) to uphold standards * four different types of participants: * designated dealers * Regulated virtual asset service providers (VASPs) * registered/licensed as VASP in a Financial Action Task Force (FATF) * Certified VASPs * permitted to do VASP work through certification * Unhosted Wallets * Other individuals/entities * to begin with, network only available to Designated Dealers and Regulated VASPs * removing permissionless-ness * perimeter control * protections for the Libra Reserve * Reserve will hold assets with: * very short-term maturity, * low credit risk * high liquidity ## Introduction * blockchains are good for: * distributed governance * open access * security through cryptography * the bad thing about blockchains is that: * prices are volatile * they can't scale Belief that the benefits of blockchain can come with compliance and regulatory frameworks. ## Libra Payment System * Libra made up of three parts: * Blockchain as the distributed ledger, which acts as the backbone * Libra coins that are backed by Libra Reserve of assets that are cash or cash equivalents and short-term government securities * Governance by independent Libra Association and Libra networks * Libra Association is headquartered in Geneva, Switzerland * Facebook has no special rights within the Association ## Libra Blockchain * requirements: * scaling to billions of accounts * high transaction throughput * low latency * high-capacity storage * Highly secure * Flexible for future innovation * design decisions: * uses the Move programming language * Uses BFT-tolerant consensus * Adoption of widely adopted blockchain data structures * Move programming language * specifically designed to ensure that assets don't get cloned through "resource types" that constrain digital assets to same property as physical assets * currently, only Association-approved smart contracts can integrate directly into Libra * BFT consensus * LibraBFT * will continue to function properly even if up to 1/3 of the network of validators are compromised * allows for high transaction throughput compared to PoW * facilitates transaction finality * security of BFT depends on quality of validators, so due diligence will be done by the Association * Blockchain data structures * Merkle trees for data storage * provides public verifiability for anyone to audit accuracy