Facebook will issue "GlobalCoin" before 2020 - What do you think about this?

[ck343]

Libra's weakness is the same weakness of what backs Libracoins up: Fiat currencies and Gov bonds.

"The European central banks have sniffed out the danger and have just decided, at France's initiative, to create a "taskforce" on stablecoins within the framework of the G7.

The concern is real, especially as their credibility is dangerously eroding these days: the Fed has just interrupted its rate hike, the ECB admits that it could continue its zero-rate policy, and the BoJ remains stuck in a massive EQ.

Economic players are beginning (at last!) to question the credibility of central banks (and moreover the price of gold is starting to rise...).

This type of competition has already occurred in history: in the Middle Ages, the Florentine Florin and the Ducat of Venice circulated throughout Europe. Their guaranteed gold content made them trusted currencies in relation to national currencies that were too often manipulated.

However, Libra does not play into this category and it is its weak point, which has not yet been sufficiently measured: the asset that will support it will be "the debt from stable governments with low default probability that are unlikely to experience high inflation" as stated in its White Paper. Precisely, in the event of a "2008 but worse" crisis, there may not be any... If the yen, the euro, the dollar collapse and experience a wave of inflation, the Libra will be swept away in the same turmoil, and savers will suffer severe losses."

https://www.goldbroker.com/news/facebook-libra-will-accelerate-the-loss-of-credibility-of-central-banks-1570

[ck343]

Facebook's Fake 'Crypto' Is "A Fiat-Money Clone"


The critical question, however, is this: Is the Libra really good — or sound — money?

Unfortunately, this question cannot be answered in the affirmative. The reason is this: The quality of the Libra depends on the quality of the underlying fiat currencies — and fiat currencies do not make for good money, as should be well known by now.

Fiat currencies are inflationary; they enrich some at the expense of many others.

The issuance of fiat currencies causes distortions in the credit markets, which provokes speculative bubbles and triggers booms and busts, and last but not least, fiat currencies lead the economies into over-indebtedness.

Against this backdrop, it becomes evident that the Libra will suffer from all the economic and ethical deficiencies that come with its underlying fiat currencies. For instance, the Libra will be inflationary money to the extent that the US dollar, the euro, and all the other underlying fiat currencies are subject to inflationary measures by central banks, resulting in the Libra losing its purchasing power in step with the fiat currencies.

In extreme cases, if the official currencies were to go under, the Libra would follow suit. The Libra is, therefore, not a real alternative to official fiat currencies, but rather a more straightforward and more cost-efficient way to use them.

So anyone who thinks that the Libra might offer an escape from the bad fiat currencies is mistaken. The Libra is a fiat money clone; just like fiat currencies the Libra is fake money.

https://www.zerohedge.com/news/2019-07-19/facebooks-fake-crypto-fiat-money-clone

[Ozero]

G-7 countries have already taken a very tough position to ban the Libra coin. Along with the same tough position of the United States, it seems to me that this coin has no great chances to come into the world. However, around this coin there will still appear many different surprises and scandals. Therefore, the events around it will be interesting.

[trickyriky]

https://www.goldbroker.com/news/facebook-libra-will-accelerate-the-loss-of-credibility-of-central-banks-1570

Let us wait for the time when Libra is released, and then, criticize or praise it. We cannot know anything about it for sure until it appears.

I have read this article. It proves that Libra can be the perfect way to collect the data about transactions, which is not needed for anyone (I mean people, who make these transactions). The author says that as Libra is going to be bounded to fiat, inflation will also affect it.

[SquallLeonhart]

https://www.goldbroker.com/news/facebook-libra-will-accelerate-the-loss-of-credibility-of-central-banks-1570

Let us wait for the time when Libra is released, and then, criticize or praise it. We cannot know anything about it for sure until it appears.

I have read this article. It proves that Libra can be the perfect way to collect the data about transactions, which is not needed for anyone (I mean people, who make these transactions). The author says that as Libra is going to be bounded to fiat, inflation will also affect it.

It is very important to take note of this, I told my friend this of recent when we were discussing about Facebook coin, I told him I wonder why people are criticizing the Libra network when they are yet to see its function, we might think Facebook coin will be a disaster and then end up being the most perfect system aside bitcoin. One thing that many of us have to have to register in our mind is that Facebook coin can never affect bitcoin, there system are not the same.

As bitcoin operates in his own way, so as Facebook will also operate in its own way and also have its users. The best thing for us all is just to keep our fingers crossed like you said and see the outcome of the technology they are coming with, while we go about our own activities in preparation for the coming altcoins season.

[jarhed]

https://www.goldbroker.com/news/facebook-libra-will-accelerate-the-loss-of-credibility-of-central-banks-1570

Let us wait for the time when Libra is released, and then, criticize or praise it. We cannot know anything about it for sure until it appears.

I have read this article. It proves that Libra can be the perfect way to collect the data about transactions, which is not needed for anyone (I mean people, who make these transactions). The author says that as Libra is going to be bounded to fiat, inflation will also affect it.

It is very important to take note of this, I told my friend this of recent when we were discussing about Facebook coin, I told him I wonder why people are criticizing the Libra network when they are yet to see its function, we might think Facebook coin will be a disaster and then end up being the most perfect system aside bitcoin. One thing that many of us have to have to register in our mind is that Facebook coin can never affect bitcoin, there system are not the same.

As bitcoin operates in his own way, so as Facebook will also operate in its own way and also have its users. The best thing for us all is just to keep our fingers crossed like you said and see the outcome of the technology they are coming with, while we go about our own activities in preparation for the coming altcoins season.

The Facebook coin will act as the cryptocurrency of the future, an analogue of the dollar system. According to the idea, this coin will have official regulations in almost all countries.