You convert your fiat currency into crypto currency. Once the exchange is done, you have no rights to the fiat currency. This is in no way similar to a bank. The bank can use your deposited money, whereas here the currency is always in your digital wallet, and only you can initiate a transaction in and out of it. Do you have any information that contradicts this? I've only skimmed the whitepaper.
>Facebook's tokens given users the right to exchange their tokens back for the backing assets.
Well, yeah, of course you can convert the tokens back, similar to how you can exchange between currencies, but it would also depend on the exchange rate. You would not necessarily get back the same amount you put in.
"It is important to highlight that this means one Libra will not always be able to convert into the same amount of a given local currency (i.e., Libra is not a “peg” to a single currency). Rather, as the value of the underlying assets moves, the value of one Libra in any local currency may fluctuate. "
Sure, you won't get back the same USD, but you will always get back the same amount of the underlying assets as you put it. This is the the same situation you would be in if you had a bank account denominated in euros.
Alternatively, you can look at this like an exchange traded fund. In both cases what you are buying are tokens which represent shares of other assets.
