In our new monetary theory, stablecoin uses cryptographic form of fiat money while still keeping the power of money issuance in hands of central banks.

Libra is a stablecoin developed by Facebook. Libra’s mission is “a simple global currency and financial infrastructure that empowers millions of people”. Libra uses a basket of stable currencies and assets as a reserve. Libra doesn’t challenge the power of money issuance typically owned by the central government, but Libra has the potential to replace money flow services of the current financial system, further reduce the role of banks and other financial institutions in financial services.