Can someone give something like eli5 how this works? Is the currency pegged to some currency? How is that peg supposed to hold? Is facebook a bank? Where are the assets supporting the currency ( if they exist) invested?
> it will be backed by a collection of low-volatility assets, such as bank deposits and short-term government securities in currencies from stable and reputable central banks.
and
> The assets in the Libra Reserve will be held by a geographically distributed network of custodians with investment-grade credit rating to provide both security and decentralization of the assets.
> it will be backed by a collection of low-volatility assets, such as bank deposits and short-term government securities in currencies from stable and reputable central banks.
and
> The assets in the Libra Reserve will be held by a geographically distributed network of custodians with investment-grade credit rating to provide both security and decentralization of the assets.
https://libra.org/en-US/white-paper/#the-libra-currency-and-...