Libra Reserve and the Libra Investment Token

Libra’s network launching brings with it a handful of new technological advances in blockchain development, from its new consensus protocol to its new blockchain programming language. However, Libra’s success or failure will hinge on the execution of two mechanisms underpinning the entire system: Libra Reserve and the Libra Investment Token.

According to documents published by the Libra Association, Libra Reserve was created to help preserve the value of the underlying Libra tokens. These reserves represent a basket of currencies, government securities, and bonds, that the association has deemed “stable and reputable.” While the association has not gone into detail on the exact assets that will make up its reserves nor the specific weights of these assets, it did cite by name the U.S. dollar, Pound sterling, euro, and Japanese yen as examples of currencies from reputable central banks and governments in early media material shared with The Block.