Compared to the USD, EURO, and YEN, it is a cryptocurrency mainly because there is no central bank. The Libra also has a public ledger, but only a few people are permitted to mine coins.
Nonetheless, there is an ongoing debate on this matter and it would be best to see what the experts are actually saying about this.
Matthew Green – Associate Professor, John Hopkins University
“It’s fair enough to say this uses cryptocurrency technology, It’s more restricted in the way the blockchain works, but even that’s not totally unprecedented.
When compared to OG crypto, it appears a lot less than a cryptocurrency. For example: bitcoin is permissionless which means anyone can participate. With Libra it needs permission in order to participate.”
Lana Swartz – Assistant Professor Media Studies, University of Virginia
“I AGREE WITH THOSE WHO HAVE BEEN SAYING THAT THE LIBRA ISN’T A REAL CRYPTOCURRENCY.”
Swartz explained that Libra is permission, which means only a few entities could track the ledger. With this, it makes it much like digital currency as opposed to a cryptocurrency.
Nicholas Weaver – Researcher, International Computer Science Institute; Lecturer/Computer Science Department, University of California
Libra is under pseudonymous “wallets.” Transfers are completed via public key operations. Weaver says “yes, it is a cryptocurrency.” He also noted that the permissioned model had been designed to have less computing power. Cryptos such as Bitcoin uses a lot of energy just to prevent Sybil attacks. The attacker in Sybil attacks loads the system with computers controlled by the attacker and eventually spreads havoc.
So is Libra a cryptocurrency? The experts have spoken and while the majority of them say that Libra is not crypto, it is your call. Cryptocurrency or not, expect to read more about Libra in the days to come as it can be as competitive as the Bitcoin.