Topic: Can Libra Disrupt The Financial/Economic System? - page 8. (Read 2005 times)

If Libra gets good acceptability in countries other than the United States, then it can have negative consequences for the local economies. Libra is essentially a digital form of the United States Dollar. Most of the assets that back up Libra are denominated in the USD. So if Libra gets widespread usage in a country such as Zimbabwe, then the national currency may get negatively impacted. Why should anyone use the inflation-plagued Zimbabwe Dollar, when they have the option of using the much better United States Dollar?

To be honest, I think Libra would not have faced all these giant barriers as the US, France, and other governments if their project is not going to potentially disrupt the existing financial and economic systems. The way I look at it, Libra is a promising project that could actually shaken the very fiat system that serves as the lifeline of all these governments. The US could have simply laugh it off. But they didn't. They even convened congressional meetings to discuss how they could halt its development. 

If Libra Coin really exists, people will prefer to use Libra because it is faster and also without using a third party such as a bank. This might make people think Libra coin will be able to disrupt the monetary system because the current monetary system depends on the central bank in spurring economic growth

It might not be as supported as you think, France has already said that Libra isn't welcomed in the country as soon as it is introduced and they are planning to have the support of the European Union to block it in their countries as well. As far as I see it they are not in favor of a cryptocurrency that is belonging to a big company who is already known for misusing their users' private information. As far as I can tell this won't change anything in the financial perspective as long as it is introduced as a payment system it will only attract people who are already using Facebook and as far as I can tell a lot of buyers and sellers already have preferred payment methods on their own and that is including other cryptocurrencies, Libra would just be like any other option out there.

I think that Libra when launched, will be of a stable nature, but what will move the masses is the fact that there is a large structure in the Business Model, because Facebook reaches all parts of the world, those countries where it is forbidden to trade currencies such as dollar, euro, and other major ones there would be no problem, because through Libra they can pass it directly to Bitcoin, which means that the price of Bitcoin increases substantially, it could be said that by 2020 we will have a more active market.

If not only the government of the United States, but also the government of France and Germany speaks negatively about the Libra project, then apparently the fears of governments are well-founded.  Apparently this project can really destroy the entire world economic system.  But I, as a simple person, would really like to know specifically the pros and cons of the Libra project in order to find out what will benefit humanity and what will worsen the situation.  It is necessary to investigate this issue all sided, and not just from the side of the cryptocurrency user.  It is also necessary to take into account the possibility of the existence of the state, and not only takes care of a small group of people, because there are much fewer users of social networks and cryptocurrencies, if we take into account the total number of humanity.

In my opinion, Libra Coin has the potential to disrupt the existence of fiat money. With peer to peer transactions, the role of the central bank is no longer needed. In addition, Libra Coin has the potential to disrupt the current monetary system and therefore many countries prohibit it

Libra is effectively official toast, people.

France and Germany won't permit it to exist.

https://www.reuters.com/article/us-facebook-cryptocurrency-france-german/france-and-germany-agree-to-block-facebooks-libra-idUSKCN1VY1XU

If they won't then you can bet your bippy everyone else will follow suit, witness the relentless bile every single US politician gave it during the recent hearings. Their official and final position will probably involve nukes and mailing turds.

Going forward it's full crypto or full government. No middle ground will ever be allowed to exist.

A currency managed by Facebook is obviously centralized and under total control of the system.
That is, just a click to take away all your belongings and keep you from acting.
Exactly the opposite of the spirit of Bitcoin.

I also do not see any future for the Libra coin. I think it is just created too much hype in the market and now slowly that hype is beginning to die.
The only thing which i feel is positive about Libra coin that all the face-book community will know about this coin and hence many new people will come to know about the crypto and bitcoins.

I think Libra will be hard to officially operate. Not only are they being accused of manipulating the crypto market, they are also accused of creating money laundering to evade state taxes.
There are too many disadvantages for them and I think libra will fail soon.

Libra already exists in essence but only by access of central banks, SDR is a collective holding via IMF of various FIAT currencies including the Chinese.   The difference is not one person here holds SDR because its not issued to any organisation lower then a central bank and by billions of value.  


Libra means nothing especially short term, could it form some trend for a move away from dollar is a possible question but its not going to alter balance by the pocket books of not especially wealth consumers.   It might alter perception and that would be the main fear when Dollar is so incredibly weaker then its current status the last thing wanted is any fair and open competition to the status quo.
       Im not sure Facebook quite intended this effect, paypal started with noble ambitions also but then fell back on the more certain ground of purely being a payment processor rather then a global currency type.

I do not understand that how can a stable coin change the financial system of the world. The important thing is that Libra is more sort of centralized coin because to keep the price stable you have to control it and this will make it centralized coin.
The hype of Libra is more only because of Facebook and when the actual Libra coin will be available in the market, it will not be much worth.

If a stable Libra coin is issued, of course, it will greatly affect the existing financial system, because the level of its distribution and use will be supposedly large. Since this stable coin will be supported by various generally recognized national currencies, as well as other financial assets, its price will be arbitrarily set and various abuses will be possible here, and Facebook has repeatedly been exposed in them.

I am even more interested in this Chinese CBDC digital coin, which should simply become a digital renminbi.

A stable coin, similar to Libra, which will be based on various fiat currencies, in my opinion, should be issued jointly by manufacturers of these fiat currencies. Relying on the issue of global financial stability on a private corporation is very risky.

Indeed. One of the key factors will be how accessible/liquid it will be on the open markets. How and where will it trade vs other pairs.
If it's only available to hold in select wallets such Calibra, than very little impact.

Paypal is still useful for adding a layer of protection to otherwise unknown websites.    So on quite low pay items, maybe some random order from a China related shop that isnt exactly credible then paypal can give some familiar policy in requiring the vendor to actually deliver the goods or they would be subject to returns policy similar to Ebay.
   If its the same cost to me either way then I'm quite possibly going to use Paypal and the vendor is maybe taking some cost but also benefits from the added revenue.  

Its why Libra might work despite not being anything really that fancy and I dont consider it especially likely to be innovative but if it allows Facebook to enter into commerce transactions all over the world that might not even be related to Facebook, its a game changer for them and a giant avenue for revenue growth on their balance sheets.   I dont even like Facebook, I prefer twitter if anything at all but I dont blame them for trying this idea out and I dont believe they will be giving up easily on it.    Opposition is to be expected, the multi currency aspect is quite surprising in how its being done and I hope they dont change that but they might.

And good fucking riddance to them

They are inconsequential in today's world anyway. Really, who is actually using PayPal these days? I had been using them like 5 years ago, and now I can pay directly with my payment card or use crypto if this option is available. You might be able to use Libra in the same way, but here's the tricky part, which is, how are you going to cash out? Both online and over-the-counter cash-out markets for crypto are pretty well established since there is demand for it. Will there be such demand for Libra?

Exactly. Both governments and central banks have a lot of power, and they won't want anyone or anything that would disrupt the entire economic infrastructure. Facebook's Libra represents a threat to the very existence of the USD. Aiming to become a stablecoin, it could gain a lot of popularity effectively replacing the US national currency. That's something the government will not allow to happen anytime soon, which is why regulators have started "attacking" Facebook's initiative before launch. Another reason why governments have been vary of Libra is because Facebook has been known to violate people's privacy. Its social network platform has been highly controversial after the Cambridge Analytica hack, making governments believe that Libra will become extremely risky for its citizens.

Given how many governments have been opposing Facebook's launch of a worldwide cryptocurrency, it's probably that Libra may not launch by 2020. By then, Facebook won't be able to disrupt the economic system in the way it was initially planned. Even if Facebook doesn't manage to create its own cryptocurrency, governments and central banks will, greatly disrupting our entire economic infrastructure in ways that we've never imagined. Satoshi envisioned a world where Blockchain technology takes a part of our daily lives. With the current situation, it seems that this will become a reality within the not-so-distant future.

Nonetheless, it's evident that Libra will not completely disrupt our economic system, since it's practically an "improved" version of the USD. But, Blockchain will fulfil this purpose as it becomes adopted by every government and central bank worldwide. In the future, we'll be using the Blockchain without even noticing it. Just my opinion

The point is it wont be 1 dollar.   Paypal balance is 1 dollar or 1 Euro if you are in Europe.   Here Facebook is maybe doing something new, its not crypto I agree but it will mixing many different currencies.   The common person doesnt manage their plain cash especially, by default they are supporting the government of their country by holding a national IOU or zero coupon bond for value of 1 dollar or 1 Euro.    
  The common person in the millions holds the IOU and the government prints excessive amounts of new cash and benefits from that latent demand.   Its a form of taxation via inflation which Facebook Libra might disrupt some, hence the panic from the pinnacles of government held aloft by the burden of the many.


I'm interested to know what % Libra will equal but it will not be 100% dollar.     Let me go find a list of standing % in modern FIAT currency standards.
Sterling used to be a massively greater % then it is now, fall of British colonial empire explains it I guess.   Point being, massive changes are possible but its a decades based trend.

This is SDR ratio.   Why do we care, its linked to IMF and the most likely successor to Dollar dominance not Libra or anything similar tbh.

You can't make money from a basket, that basket is what you are using anyway and when they devalue your money devalues as well. So for example lets say 1 Libra will be equal to 1 dollar, by keeping your money there you are basically running against the inflation which is killing your money and your net worth.

You may think that it will get more valued or even better you may think that people who live in third world countries could get libra and leverage their position because their own national currency will devalue faster than dollar and that is great for short term gain but since dollar devalues anyway and you can't buy stuff for 100 dollars that you used to can buy, nothing changes, you are a bit further away from losing worth and that's it nothing more.