Libra becomes exchange protocol for multiple currencies. within the Facebook net.
A libra protocol supports pricing in one of many fiat currencies. Then the back end ledger is a FX exchange machine, basically a gateway back to central banks and Swift.
Run the FX machine the same way Coinbase does it. A few rules to determine the liquidity of any given pair, then manage the in and out queues for that pair. So Facebook goes straight for Coinbase, it extends the sandbox around the FX exchange to all Facebook users in their local currency, if they have the economic liquidity. Facebook not only get Coinbase, it eats a chunk of bitcoin.
The rule here, look at finding the minimum tree from a sandbox perspective, a network muddle puddles and trickles. The current libra proposal will find it impossible to stop bets outside the net, so we get local libra/fiat exchanges that carry risk and charge fee.
Zuck gets a mess, and bitcoin fills more of the space. Zuck be better to host a massive FX exchange, specializing in small quantities with rapid throughput. In the exchange case, his currency board is watching the algorithm and making sure entry and exit for various currencies are 'proper'.
I am taking a bet. I bet the revised libra version is this proposal here.
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