While the discussion of the technical elements of the Libra is fascinating and being greatly discussed and planned, I think it will be worth to open a discussion on the type of reserve that a real stablecoin should offer.
The libra founders have decided on Fiat currencies, and fiat currency based notes. Though this will allow for a stable price of the coin, it will not grant for the sustained value over time.
If we want ot dream on a real private an stable currency we should be moving away from FIAT and use financial products that base their values over commodities like futures or other more sofisticated. Our reference prices should be gold, siver, corn, soy and oil (based on today’s most traded commodities).
Basing the price of the coin in Government based coins is only good because of the familiarity of the users to them, but the real revolution is to start steering way from them.
Over history Governments have aboused their coinage rights and destroyed the value of currencies. Gold value from 1833 to 1920 was less than $20. Today we are seeing prices of $1200 to $1400. We can see the same value lost if we apply it to candies or the price of a bottle of Coca Cola which was sold for $0.05 (1 nickel) from 1886 to 1959.
Storing phisycal assets is inconvinient and I don’t think anybody wants to have the Libra reserve building their own Fort Knox or giant granaries. The world has evolved and the use of financial instruments have eliminated most of the custodian expenses of having gold or other commodities as a value reserve.
I would like to open a this discussion thread to people with interests in finance and economy to propose a modern alternative for the LIbra reserve. Several things to discuss can be the type of asset, the costs, investments allowed to the reserve., etc.