Libra Vs. US Congress: All There Is to Know Ahead of Hearings

These assets consist of a basket of bank deposits and short-term government securities that will be held in the Libra Reserve for every Libra token that is issued.

The Libra Association is itself controlled by the Libra Association Council.

The white paper states, "Since authorized resellers will always be able to sell Libra coins to the reserve at a price equal to the value of the basket, the Libra Reserve acts as a 'buyer of last resort.'".

"To ensure separation between social and financial data and to build and operate services on its behalf on top of the Libra network," Facebook has created a regulated subsidiary called Calibra, which will also be responsible for providing the necessary financial infrastructure, namely a digital wallet that will allow users to store Libra tokens and send them to each other.

Facebook has revealed the release of the Libra Investment Token - distinct from its public-oriented cryptocurrency Libra - which can be purchased or distributed as dividends to the association's founding members and accredited investors.

"Bottom line: You won't have to trust Facebook to get the benefit of Libra. And Facebook won't have any special responsibility over the Libra Network... We've been clear about our approach to financial data separation and we will live up to our commitments and work hard to deliver real utility."

"France was quick to comment on Facebook's project, prompting other jurisdictions to group up and discuss the possibilities for regulation. Hours after Libra was officially announced, French Finance Minister Bruno Le Maire took to Europe 1 radio to strongly oppose the idea of the stablecoin becoming a replacement for traditional currencies."It is out of question'' that Libra becomes a sovereign currency, Le Maire declared.

According to Cointelegraph Japan, local authorities have already started investigating the impact of Libra ahead of the aforementioned meeting of the G-7 finance ministers in France.

"I don't think Libra is going to undermine sovereign currencies, but I think it will change them, much in the same way that the Internet has forever changed how we purchase goods and services, like buying a book, Libra will change the way that individuals use money. Fiat currency was an evolution from the gold standard, and fiat currency has value because we collectively believe in the strength of a given national economy, and where it sits in the world economy."

"The Libra Association welcomes this public policy dialogue and will contribute to what we hope will be a multi-stakeholder process for designing regulations that support the potential economic and social contributions of digital currencies. The lead up to the launch of Libra in 2020 builds in the time for conversations with regulators and policymakers around the world to take their questions into account."