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RE: Why Libra is Different Than All the Other Cryptocurrencies

in #cryptocurrency5 years ago

I’m skeptical of libra, but I’ve been wrong before. Fb gives free internet here in philippines, and May have some deleterious effects.

http://nymag.com/intelligencer/2018/09/how-facebooks-free-internet-helped-elect-a-dictator.html

My biggest question is how can fb create stability if other central banks can’t peg to the dollar. Will fb have the ability to take out or increase libra coins as needed or what? Basically fb becomes its own central bank/central token issuer.

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Yeah it’s crazy Facebook can be its own central bank. According to the white paper, FB will hold a bunch of different short term, low volatility assets - not necessarily assets denominated in USD. They will adjust as needed to cover all deposits 1-to-1 (no fractional reserve). Well this will never be perfectly stable because all currency prices are relative, People using Libra will not see drastic changes in purchasing power

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