The Libra Association is the de-facto central bank of the Libra cryptocurrency. It is set up to regulate the cryptocurrency and maintain liquidity. Currently, it is made of 28 founding members. It plans to increase that count to 100 when it launches in 2020. One notable founder in the list is CoinBase.
CoinBase is the largest and most trusted cryptocurrency exchange in the world. Facebook is new to the cryptocurrency game, but CoinBase is a veteran to the industry. CoinBase is one of the few places where you can buy a cryptocurrency for debit & credit cards and transfer it back to your bank account. CoinBase also functions as a wallet for storing Bitcoin & Litecoin.
So what does it gain by joining The Libra Association?
The answer is fairly obvious. They are staying ahead of the game. Libra is set to be the largest cryptocurrency in the world. Its’ potential user base is 2.3 billion users. At the moment, CoinBase has only about 13 million users. Being one of the first exchange to provide Libra trading to other cryptocurrencies will help them stay ahead of the competition and will ensure long term survival. In return, The Libra Association gain the expertise that CoinBase as accumulated over years of operations. CoinBase can guide Facebook on the best method to set up the infrastructure and ensure faster transactions. CoinBase can assist in building the fiat to Libra trading and setting up the cloud wallet. CoinBase can even assist in regulatory compliance.
Overall, CoinBase is one of the best partners to have to make sure the cryptocurrency succeeds. Hopefully, we will learn more about CoinBase’s role in The Libra Association.