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From the Financial Times: The long-awaited Facebook-led digital currency Libra is preparing to launch as early as January 2021, according to three people involved in
From the Financial Times: The long-awaited Facebook-led digital currency Libra is preparing to launch as early as January 2021, according to three people involved in the initiative. The digital coin will be backed one-for-one by the U.S. dollar. (this is an example of a stable-coin the account money is backed by assets of stable value). Suppose that the Libra is quickly adopted as a means of payment for some services e.g. you can pay for your UBER ride using Libra. What will happen to the Monetary Base and the Money Supply (M1)?
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