Topic: The Central Bank of Facebook - page 5. (Read 6438 times)

So you are saying it is a trap for the people of the world? More buyers will certainly boost dollars or euros worth is that it? IF it is then it will be a damn failure for sure, people wants decentralized money that is why we are here, we chose to support the one that is called Bitcoin. I think that could be a double edge sword for Facebook, and maybe it will totally drag the app down if this fails.

True, this coin will not return more value if you buy it. So this libra coin is purely for Facebook only for their business currency. Maybe only institutions will adopt it, bitcoin investors will not switch from bitcoin and adopt this stable coin.

What makes you think that majority of Asian countries will be skeptical about it, is it because it will be rejected because it is indirectly associated to United Stated since Mark Zuckerberg is a citizen of US, because to the best of my knowledge, if we talk about continent that is the most cryptocurrency friendly, it will still be Asian countries, except china that is still skeptical about its acceptance which I believe that very soon they will loosen up on it too and wholeheartedly accept it.

The edge that I see that Libra coin will be having over some of the cryptocurrency is because it’s centralized technology will make the cryptocurrency transparent to government, and they will have the access to still be able to monitor activities surrounding it, most especially that of its transaction which has been their main challenge with cryptocurrency.

Okay, one thing I do know for sure is that anyone that's creating cryptocurrency is doing it for the purpose of making money, even Facebook is not doing it for free, they are after the cryptocurrency business and how much they can make from it. But the money they make money is not pulled out of thin air, if it is like that, then maybe you should try pulling yours out of thin air as well. The coin is a stable coin and is going to be pegged 1:1 with the US dollars just like other stable coins are. That's why most institution are adopting it, if it wasn't stable they wouldn't have adopted it.

They are not not creating money out of thin air.  They are still doing that but they are doing it more legit than you may think.

You think that the centralized ways of sending money will be totally free, there will be charges for it, even if not for transaction fee which I think that may happen as well or maybe not charging for having your money stored, it will be your financial history, facebook is known to sell their data of people on their websites to people who pay the most, so when you control the worlds biggest bank all of a sudden what will happen? They will be capable of seeing what you spend your money the most, you like to eat ice cream every once a week?

Well, your info will be sold to all ice cream companies, you like to bet on soccer matches? Your info will be given to sportsbooks, basically every single transaction you make will be data to sell for them. That is the money they create out of thin air, they like to watch over your expenses and be able to sell that data too.

With no official news on whether or not Libra coin will have a limited supply I think that they will just go in this route and create something out of nothing. The point here is that everytime you want to buy Libra it will just instantly pops out and you have a cryptocurrency who supposed to be can be use on any establishments that accept it. It will just be like a credit from your FB account and I don't think it's main purpose will be for us to trade it to earn money, any coin backed up by fiat is just a stable coin meant to be hold or spend.

One way or another, the Facebook coin will be used for trading within the network.  And if you consider each user individually, then since this resource is most used by citizens of Africa and India, you can outline the circle of interested people.  In any case, it is not necessary now to have a very limited opinion on this project.  The best look at the results.

@BobK71
Why worry about FB coin? Most countries won't allow this coin. Some countries have already started to be clear saying FB won't be able to issue coins here. The minority who will be using this currency will be from tier 3 countries, I bet you won't see it in westerner countries.
Also it's easy to block FB currency since there is a company behind, while because it's not possible.

What I was trying to say was that, Facebook and Libra will not be at the core of imperial system, but on the outer ring, doing real work to support the paper money of the system, and taking the blame for any crisis.  Let's face it, Mark is not exactly top-elite material!

This is a good point, and goes back to the age of European merchantilist empires that went out and conquered the developing world.  'Private' entities like the (Dutch) East India Company that were heavily tied to governments would go out with state backing to take land and resources to help support the paper money and debt issued by their countries' elites.  This is nothing new.

For whatever reason, the ownership of all these colonies eventually turned from corporations to their governments.  My guess is that the rule by corporations, with all the 'private' incentives, became too obviously brutal and became a problem for the soft power of the empire.

We have to think this through carefully.

Say, the 'consortium' issues too much Libra.  By definition, this means the supply of Libra goes up, but its fiat reserves don't go up by the same degree.  There is too much Libra chasing goods and services, but not dollars or euro.  Inflation would happen within Facebook only.  At some point, confidence in Libra will falter, but this problem will be limited to the exchange rate between Libra and fiat.  (When Libra holders fear this problem, they will sell Libra for dollars or euro.)

The only scenario where the problem of confidence in Libra becomes a problem for fiat money as well is when central banks decide Libra is 'too big to fail' and bail it out.  I don't think that is likely.  The Western elites are not stupid.  The collapse of Libra will hurt a lot of people, but when the problem can be blamed on Facebook alone, why risk the reputation of fiat currencies to save Facebook?

Can Libra become so big that it really is 'systemically important' and really requires a bail-out by today's Western tradition of keeping voters happy?  That is always possible, but I think the Western elites will (correctly) sound the alarm on Libra before that bubble becomes too big, so the bubble can burst and the pain will be limited.

Libra will be a plus for the Western elites, most likely, in the short to medium term.

I think one of FBs primary aims with this is so they can open up a new sphere to their relentless data mining. This new coin will give them access to huge swathes of purchasing data, which they will bolt onto the data they already have about us, and use it to improve the accuracy of their behavioural modelling, so that they can then sell the final product - more or less accurate digital models of each of us - to marketers and other nefarious third parties. This has always been Facebook's business model. This "free" product is only free in the dollar sense; we pay for it by surrendering our personal data.

They'll have other aims too of course, FB is nothing if not ambitious. Presumably they are going after WeChat and also eventually the US dollar. But we can't overlook the history of their motivations in extracting and monetising personal data.

The main thing to realize is the "centralized" decision making powers of such a consortium and how that can be manipulated and exploited to further the agenda and interest of the people that would determine it's value. This is where Bitcoin is standing high above any other centralized token or Blockchain based technology, because no centralized authority are making those decisions and the price is determined by the market through supply and demand for bitcoins.  

It is open for discussion on how rich individuals can manipulate open market prices too, but at least no centralized authority are calling all the shots and making the big decisions about Bitcoin's future.  

Everyone all have their hidden agenda, which they will gradually be working on underground and releasing it one after the other for such agenda to fully manifest, don’t be surprise that you are already talking about what is going on within the Facebook group already.

I am sure they have all the plans you stated here, in fact, studying their past and recent moves, from trying to have monopoly of the social media, to sending money out to space and now creating their own coin, I guess they really have their plan to own a nation, although it wouldn’t be a bad idea because Mark is really a good man and a great leader who has the interest of people at heart.

People aren't very fond of it because they don't trust Facebook's ethics, and they see this as an attack to privacy. People are coming up with worst case scenarios, but most of these won't even come close to being realized if Libra doesn't achieve worldwide success -- something which I don't see happening, considering its limited use cases.

Which just makes it scary knowing that Facebook is the one who operates it, and I'm sure as hell that that company lost its credibility and public trust already due to the number of data breaches it found itself into over the course of a few years. They can easily do a 1:1 backing on Libra and clear doubts on people but even then, I don't think many will still trust Facebook's own crypto.

But we all know that people can still make a fool of themselves just for the profit.


So are we really willing to make a poor and a losing compromise in exchange for profits? Yup, I was right about that all along. Facebook is just one of those giant corporations trying to make money in the expense of others, and Libra, too, is a clear indication of that.

Facebook simply can't bear the risk of having same delegation for Libra as of Facebook. It's not that simple really! Why do you think Facebook has taken time till 2020?? As we are talking about Libra now, Facebook's highly paid executive's team has already started reaching to various governments of the big world economy and trying to get an official license for using Libra in their economy! I am sure some technically advanced economies like Japan or Germany will go ahead with this idea. However, majority of the Asian countries will be very skeptical to allow it in such a big scale!

As the article rightly pointed out, Libra will be controlled by a consortium of big IT and Fintech companies in an endeavor to take their business penetration to the next level. Yes, common users will be benefited because a lot of new technologies will be brought into this field to make money transactions simpler and cost-effective, but can we call it a cryptocurrency really?? What common features Libra will have to a crypto??

I'm not sure why Blain would think this way.

The fact that Libra bases its value off of the fiat currencies that it has in its basket means that it's acknowledging that fiat currency will still be the underlying asset used by the financial system, and that it would never replace fiat.

I think that Libra's main objective here is to create a centralized alternative to bitcoin, but I'm not sure how effective that will be given that most bitcoin users know exactly what's going on.

Besides, there is absolutely no reason to believe that regulators will not act as they will see Libra as a threat, much the same way that they see BTC as a threat, as it takes away from their control over the economic system. As Chris Hughes said:

So every crypto-currency exchange is basically just a bank and now Facebook wants to be a bank.

Most banks begin with good reputations but Facebook has a terrible reputation that nobody trusts.