Potential negative implications of Libra cryptocurrency

Abstract

Cryptocurrencies have been in the center of interest of both scientific and professional public for over ten years. Due to the volatile exchange rate against convertible currencies, investors predominantly use cryptocurrencies as an instrument of speculative investment, while their use in the payments is at a negligible level. On June 18, 2019, the Internet giant Facebook announced the creation of a consortium of financial and technology companies aimed at establishing a global cryptocurrency with stable value called Libra. It is planned to create an open blockchain through a new programming language, which will serve development teams in the future for creation of smart contracts. The subject of research in the paper will be the potential operational performances of Libra concept. The basis for the research will be a white paper published by Facebook and knowledge about the functioning of other cryptocurrencies, notably Bitcoin. The aim of the paper is to highlight the expected economic and security implications of Libra concept. (English) [ABSTRACT FROM AUTHOR]