Facebook announced the introduction of a "New Global Digital Payment Coin" called Libra for the first half of 2020 to enable foremost payment services in "WhatsApp" and "Facebook Messenger". Libra is built on a distributed ledger technology (DLT) environment developed by Facebook. Libra is a so-called “Stable Coin”, which is a crypto-asset that is tied to a basket of bank deposits and short-term government se-curities for a range of historically stable international currencies (including US dollars, Euros, British pounds, Singapore dollars, and Yen). This initiative aims at providing a crypto-asset that overcome the excessive volatility of conventional crypto-assets and therefore could potentially qualify as a stable store of value and a mean of payment. Facebook's ultimate goal is to establish Libra as a network for worldwide digital pri-vate money ("the internet of money").
The effects of the introduction of Libra (or other stable coins) are difficult to predict. However, a very fast and global spread of Libra is possible due to the network effects that Facebook has established. Especially in the case of widespread global distribu-tion, stable coins are associated with considerable risks and challenges for monetary policy, financial supervision and oversight, monetary sovereignty, payment transac-tions, and financial stability. In addition, stable coins pose a large number of regulato-ry questions that need to be identified and addressed.