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I fund it irresponsible when journalists show pictures of a bitcoin or ethereum represented as a physical coin. My father-in-law (a medical doctor) was surprised when I told him they were not physical coins as a result of all these misleading graphics. His follow-up question was “what are they made of then?” There is going to be a big backlash from all this stuff being mis-sold into retail channels and journalists have played their part.

My assumption is that the reserves will be ringfenced to underpin the Libra currency. A Libra wallet won't pay any interest but Banks and Calibra will then offer savings accounts within the ecosystem which they will be able to reinvest as they wish (in loans and mortgages) but that will require a banking license and for them to hold capital and liquidity reserves.

For those interested you can read the Libra whitepaper here: https://libra.org/en-US/white-paper/