It doesn't have nominal interest, but since it's pegged to a variety of financial instruments it will effectively bear interest (positive or negative) with resp

It doesn't have nominal interest, but since it's pegged to a variety of financial instruments it will effectively bear interest (positive or negative) with respect to any currency. Facebook wants to do two things: 1 Bank the unbanked or underbanked in developing countries. This is key because anybody in these countries with a smartphone will have a good banking service and be able to pay for things like they do with WePay in China. The user experience and network effect will probably be better than anything the local banks could offer. Also the currency will be more stable and remittances will be almost frictionless. 2 Have these newly banked use Libra for their day to day transactions. The more money they put on the platform the more interest FB collects. Even if they don't do it now, FB will eventually integrate Libra with their other services like ads (both from a payments and data-gathering perspective) and FB marketplace. By making their bank account a "cryptocurrency" FB can try to circumvent the hundreds of differing banking standards and regulations around the world. But ultimately this is going to cause a death by a thousand cuts. It's actually a legitimate national security issue for many countries to have large portions of their internal economy being controlled by mostly American corporations in a foreign currency.