Libra Chartered


Libra Association
Amidst heavy fire from regulators and analysts, the Libra Association was formally chartered on October 15th, 2019 (announcement date) at Geneva. Of the original 28 pro-forma members, 7 dropped out and 21 forged on to sign the charter.

Human Capital
Board of directors (L-R pic above): David Marcus (Calibra), Matthew Davie (Kiva), Katie Haun (Andreessen Horowitz), Wences Casares (Xapo) and Patrick Ellis (PayU). Executive team: Betrand Perez (ex-PayPal) as COO, Dante Disparte (ex-Risk Cooperative) as Head of Policy and Comms and Kurt Hemecker (ex-PayPal?) as Head of Business Development.

Declines
[This and the next 3 sections are opinions.]  Among the notable 'dropouts' were Visa, Mastercard, PayPal and Stripe. This is not unexpected as being payment processors themselves they have elected to deal with Libra at arms length rather than be close associates. [Libra says 1,500 other institutions have applied to join.]. If libra (the digital currency) is to be used mainly within fb properties, there is no compelling need for Visa et al (at the user interface level). But if libra wishes to expand to a wider audience and brick and mortar, partnering with Visa et al makes sense.

Seed Capital
As each Libra member is to contribute USD 10 million, the seed capital is expected to be USD 210 million. With a target of 100 members, the projected total capital raise is USD 1 billion. Shares are to be issued in digital investment tokens (which are distinct from the digital currency).

Use Case
  • Say, at a particular locale, no veggie burgers are available.
  • An entrepreneur grabs the chance to introduce Beyond and Impossible.
  • The finished product is called 'Beyond Impossible Burger' consisting of a full stack burger with a pattie each from Beyond and Impossible.
  • Instead of opening a shop, the entrepreneur sells it online at Instagram.
  • To order, a user surfs the Instagram page, clicks on the image of the burger.
  • Immediately, an e-invoice is presented to the user. (The e-invoice states the order id, item being ordered (the burger and specs), default quantity of one burger, user's default delivery address, mode of delivery, ETA and the price).
  • Just by confirming the e-invoice (click to proceed). the transaction, including payment, is done and the burger is on the way.

Notes
  • Speed and convenience are of the essence and the differentiators.
  • The aim is not to turn Instagram into an Amazon but to offer a simple payment method, an accessible value exchange system (P2P is a subset).
  • The use case above is one example of many new uses that could be made possible by a broad, easy-to-use digital currency.

Image Credits
David Marcus: Twitter, Matthew Davie: Sched, Katie Haun: Coindesk, Wences Casares: StrictlyVC, Patrick Ellis: ContactOut.



Founding Libra Members

Fintech
  • Calibra - A new digital wallet for a new digital currency
  • PayU - Online payment service provider

Venture Capital

Retail
  • Farfetch - For the love of fashion
  • Lyft - The whole city in the palm of your hand
  • Spotify - Unlock the potential of human creativity
  • Uber - Setting the world in motion

Social Enterprise

Crypto

Telco
  • Illiad - Telecom active in 35 countries
  • Vodafone - Helping businesses succeed in a digital world

Declined To Continue
  • Booking - Online travel & related services
  • eBay - Stay local, sell global
  • Mastercard - A world beyond cash
  • Mercado Pago - We make it easy to bill and pay
  • PayPal - Access to financial services creates opportunity
  • Stripe - The new standard in online payments
  • Visa - A network that connects the world