Libra - Concept and Policy Implications

Jonas Groß, Bernhard Herz and Jonathan Schiller

EconStor Preprints from ZBW - Leibniz Information Centre for Economics

Abstract: The announcement of the Libra Association to issue a private global currency has triggered a heated debate about the concomitantadvantages and risks. Proponents expectLibra to unfetter money from its "governmental chains" and liberalize and cheapen monetary transactions around the globe. Opponents argue that a private currency imposes unforeseeable risks forboth individualsand the whole financial system. Furthermore, Libra could hamper monetary policies of national central banks. This paper contributes to the debate in two ways. First, we offer a comprehensive overview of the concept of Libra and its possible benefits and downsides to analyze its market potential. Second, we discuss potential implications that a private currency as Libra poses for monetary policy and financial regulation.

Keywords: Libra; Cryptocurrency; Monetary Policy; Currency Regime (search for similar items in EconPapers)
JEL-codes: E42 E52 G28 (search for similar items in EconPapers)
Date: 2019
New Economics Papers: this item is included in nep-cba, nep-mac, nep-mon, nep-ore and nep-pay
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:esprep:205241

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