The Central Bank of Facebook

[BobK71]

Any time I see these companies making a new thing that would affect the whole world I remember fight club. In fight club there was a scene where the narrator (edward norton) talks about how in the future when we have space exploration it would not be colonies of nations or governments but it would be more like planet starbucks or something like that where basically he says space will be conquered by corporations.

Facebook has already tried to send a 200 million dollar something into space with spacex, now they are making their own currency as well, Libra will be the facebook currency, what stops facebook from having their own nation in the future? They could literally bribe their way into some island and buy it and basically run it, they even have their own national currency with Libra.

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.

[BobK71]

It is a stable coin with a consortium of big companies as the validator. If Libra reserves genuinely backed by a 1:1 ratio, then I don't see any serious problem. However, If they use the fractional reserve, I'm afraid inflation will speed up rapidly and take down the global economy (assumed Libra would become mainstream). Perhaps this situation is good for Bitcoin. People will realize that Bitcoin is the only non-debased currency.

Rather, we should be concerned about which companies are part of the consortium. It might also give a good idea for the future and explain what the OP wants to mean. I can guess already these companies. The same Zionist enterprises interested to rule the world on behalf of a few people.
A type of company like Facebook isn't designed for finance activity, it's my opinion. And I doubt it will be a success, FB has lost his credibility long ago

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!

[LeGaulois]

@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.

[Alijiindahaus]

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.

[Harlot]

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.

[el kaka22]

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.

[sevenjoy]

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.

[guoyu78]

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??

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.

[MadeinCoin]

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.

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.

[kaya11]

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.

[RealMalatesta]

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.

I think you are wrong about this, if you Google and check the population of Facebook users according to countries, you will realize that united State is the first while India follows, I don’t think Africa even fits in at all. So if are looking for people that will use the resources most, it will be united State and India too, but I doubt if it will be useful to India.

Facebook coin will be more of a centralized coin, and you know the issue with Indian government and cryptocurrency, India prohibit the use of cryptocurrency, and India citizens adopting Facebook coin will exposed those who are using it secretly to the public, which I learnt that 10 years minimum jail awaits crypto user, so we have to count India out first among countries that the resources will be useful to.

[davis196]

Interesting topic,however I'm still not 100% sure that the libra project will be finished.
I was wondering what the Facebook's hidden goal might be and your post doesn't answer all my questions.
There must be something we don't know about Facebook's crypto(or pseudo-crypto) strategy.

[justdimin]

I guess they can do the copy of the same thing for themselves?
We are open to many other libra like stuff, as long as its crypto and in the blockchain realm we should all support it.

You can just hate facebook and not use libra at all but when its on the public and you want to talk about it I would say support it even if its a fake support because people who get into Libra because of the facebook name will be getting into crypto currency easier. Think about it which one is easier, going from fully fiat life to dealing with crypto a bit or going from some fiat and a knowledge about libra to a bit of crypto as well?

I would say libra would be our entry point for the new people, even old people can use libra to send money to their children whereas they will get to learn more about crypto thanks to it and we can attract them to bitcoin later on.

[veleten]

OP is correct , not only it will be pegged to the basket of the currencies
that are by themselves not even valued to any of the real asset i.e. gold, silver or energy whatever
and are nothing but a mafia agreement between the central bank(s) - all we see is the rate USD to EUR od JPY to USD , for example
with Libra it is going to be the same but  blockchain based , total centralization and cybernetic minting of the money instead of printing paper
add to that inbuilt KYC on the next level , since facebook knows about you more than your wife does and you get the next cybernetic Orwell-like society with your money and social security number and all the info in the hands of the chosen few who can turn you on and off by pressing a key 

[noormcs5]

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.

As far as i know facebook is not supporting the Libra coin to be used in India at present. They may include and increase the supported countries list in the future though. Anyways it is yet to see whether this over hyped facebook coin manage to keep its hype and interest among the public.

[ck343]

Libra's value will be pegged to a basket of dollars, euro, etc. by the Central Bank of Facebook.

No only.
Libra will be backed also by Gov bonds.

It will work like that:

Users give their money to Libra in exchange for Libracoins.

Libra will buy Gov bonds with the money of the users, in order to back its coins.

Libra will keep the yields of the Gov bonds bought with the users' money.

Evil geniuses

[The Sceptical Chymist]

Perhaps this situation is good for Bitcoin. People will realize that Bitcoin is the only non-debased currency.

Pretty much the only thing I've read about Libra is from this thread, because I'm not interested in anything Facebook has to offer.  But I concur that it might be good for bitcoin eventually, depending on how many people actually use Facebook's shitcoin.  If people do get interested in it, they could come to realize how much better a true cryptocurrency like bitcoin is.  But we'll see.

Not sure about the fractional reserve thing.  But knowing how greedy and corrupt large corporations like Facebook and their cohorts are, it wouldn't surprise me if they did something like that.  It's obviously already standard practice in the banking industry.

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.

Yep.  And I hope it blows up in their face(book).

[metalglowd]

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.

As far as i know facebook is not supporting the Libra coin to be used in India at present. They may include and increase the supported countries list in the future though. Anyways it is yet to see whether this over hyped facebook coin manage to keep its hype and interest among the public.

I think public interest in this is still too weak, only limited to news that spreads on other social media or Facebook ads themselves. Some of my friends were also quite surprised that Facebook started entering crypto but I guess it's only temporary, he just shared the news but wasn't quite interested in it.

[ck343]

@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.

As Libracoins are backed through western Gov Bonds too, Govs will be more than happy to help Libra.
They have found a big new source to finance their debt.
Sometime politician's opposition is put up just in order to save face, in which case it is just fake opposition.

[LeGaulois]

@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.

As Libracoins are backed through western Gov Bonds too, Govs will be more than happy to help Libra.
They have found a big new source to finance their debt.
Sometime politician's opposition is put up just in order to save face, in which case it is just fake opposition.

Do you prefer to trust a company or a government with your money? A company that will do nothing in exchange for your local economy, and won't give you many benefits compared to cash, and maybe less.
It doesn't work like that where a FB is bought for $1, it's not going to reduce countries debt. Otherwise, it would have been done a decade ago.
Most EU countries, for example, are hunting FB because the company abuses the EU. Do you think EU countries will let FB coin issued in the EU?