The Central Bank of Facebook

[Janation]

Hope people read this.

There are a lot of people thinking that Libra will be another currency, another project wherein people can join their projects through their Bounty Campaigns and earn themselves some of it and sell it when it has a good price.

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[NathanJB]

And the banks as well as the powerful governments are cringing at the thought of this actually taking place in the world. They are now afraid that they will eventually be losing hold of their once powerful positions. They are now trying to stop the advancement of this plan. They have been busy trying to discredit this very powerful plan. It is exciting to see developments on this in the following months. This is a huge battle for sure.

[Caladonian]

Social networks compete with each other, so I suppose that in the future we will see the "central bank" of Twitter or another popular platform that is widely used by people from all over the world. I recently heard that U.S. lawmakers urge Zuckerberg to cease developing Libracoin until they scrutinize this new issue and decide how to regulate such a centralized "crypto currency" that is based on a platform which is visited daily by millions of potential customers. Undoubtedly, governments do not want to lose control over payment systems.

Government will do all their best not to lose control especially when its already dealing with money involvements, they need to make sure that this kind of act will be in their hands before even started, urging the owner of Facebook only showed that they will not allow this to facilitate without their authorizations, centralize cryptocurrency that will be built under the government umbrella.

[Searing]

That is what I'm wondering about with Facebook. They say they are not a threat to Bitcoin, as it is a STAKE coin linked

to USD/Gold and other currencies, (probably not crypto). So the folk running the nodes at $10 million a pop make all the

$$$ for the transaction fees. (let us call it 1% but that is likely too high). Facebook, supposedly, being 'hands off' on this

Libra coin thru 3rd parties, gets its revenue and $$$ from the even more personal data they can collect on your spending

habits and of course use that, even more, metadata, to target you with their usual revenue stream of ad's, etc.

0K. Now let us say some time passes and this all above is working. People have their bank accounts via Facebook linked

to get Libracoin for quick and easy purchases via Facebook/Paypal/Amazon/eBay, etc. Worldwide indeed. The node runners

are making bucko bucks, Facebook knows even more about what you are likely to buy, likely better at guessing than you are.

What I don't understand is the idea that this Libra 'eventually' will NOT be a threat to Bitcoin everyone claims?

Really, the centralization of power/money and influence is well documented by History. Would not Facebook, as a centralized

coin they can change at a whim not make a Libra 2.0 or even a different coin and try to make it the replacement store of value

that Bitcoin has now? See, they will say, we are centralized it is working just dandy, trust us.

Then using the analogy above of, historically, the centralization of power/money and influence would they not chip away with

such twisting government regulations to stifle these 'pesky' open source coins, like Bitcoin and Litecoin, etc?

Not saying it would work, but I'd bet crypto of any flavor, once established they will try, count on it.

As being complete masters of the centralized coin, it would not be an issue to change the protocol or indeed as I said above

make a Libra Gold that acts like Bitcoin and is a store of value.

Anyway, this is unlikely to be the case, with 10 years of Bitcoin and open source in the world, but again, I'll bet you right now

once Libra is established and even 'moderately' successful, they will make a run at Bitcoin in some manner to knock it down.

So to me, it comes down to 1) when will they make their play, if they get settled and established with Libra say in a year or so.

2) how they will use their power and influence with the many partners running NODES for facebook involved, to regulate and

try to trip up Bitcoin.

If as everyone on this forum claims that Bitcoin is going to change the world, turn finance upside down, well, there is 'always'

pushback and this is what I see on the horizon. Again, don't think it will work, but I'm damn sure Facebook and others are

going to try and topple Bitcoin as a 'store of value' someday. Indeed, count on it.

Anyway, my guess at the future of this Facebook experiment and this Libra coin.

Brad

[bitgolden]

I think people would choose facebooks coin very easily, it would be loved, it would be worshiped and used insanely, look at what venmo managed to do and they are not remotely close to facebook at all. The difference is crypto people wouldn't see it as a good thing, we may not like it but a regular Joe could potentially love the idea.

You are looking at it from the face value and how it is centralized and how it is controlling the data of your spending and all of that jazz we got to know but they are not looking at it that way, they are looking at it "I can just whatsapp you 50 bucks" type of deal and lets be honest that is quite cool to have that type of power compared to how hard it is to send 50 bucks globally in any normal way. So, don't get your hopes up about people not liking facebook, they will probably love it.

[RealMalatesta]

Social networks compete with each other, so I suppose that in the future we will see the "central bank" of Twitter or another popular platform that is widely used by people from all over the world. I recently heard that U.S. lawmakers urge Zuckerberg to cease developing Libracoin until they scrutinize this new issue and decide how to regulate such a centralized "crypto currency" that is based on a platform which is visited daily by millions of potential customers. Undoubtedly, governments do not want to lose control over payment systems.

Right, US lawmakers are really very giving Zuckerberg a hard time because they are afraid or at least wanted to scrutinise what this Libra will offer to the public. But I don't think there will be central bank of Twitter or other social media giant. Facebook is very different though and I don't think that other social media will follow that path. They supposed to be a platform only, and not design to compete with the current centralised payment systems.

I see other platform also joining the race too, because presently, everyone wants to explore the trending blockchain technology and time will come when people will see platforms that are not running on blockchain or having a relationship with blockchain technology as obsolete.

Remember that Facebook too was once against cryptocurrency by banning lots of projects that are posting cryptocurrency adverts on their page, but who would imagine that they will also make a U-turn one day to join the industry to the extent of trying to create one of the biggest altcoins we can ever have in the cryptocurrency world aside bitcoin. Take it or leave it, if Facebook coin scales too, then I see all other coins hype dyeing and being forgotten.

[ck343]

FACEBOOK LIBRA WILL ACCELERATE THE LOSS OF CREDIBILITY OF CENTRAL BANKS

in addition to competing with the traditional banking sector, Libra risks accelerating the loss of credibility of central banks. Because this time, it is not just about new payment services, but a new international currency in its own right.

Indeed, the Libra will be what is called a stablecoin, i.e. a stable cryptocurrency because it is based on a basket of several major international currencies (dollar, euro, pound sterling, undoubtedly yen and yuan). This stability is an essential difference with bitcoin, whose high price volatility discourages many users.

With nearly 3 billion members, Facebook (as well as its subsidiaries Whatsapp and Instagram) has a strike force that no company has ever before had in history. As a result, its cryptocurrency can compete with the world's sovereign currencies.

Emerging countries with an inflationary currency and exchange controls can legitimately see Libra as a direct competitor. Their population will have an interest in switching to the new currency to free themselves from the inflation that is eating away at their savings. Central banks in emerging countries must be seriously concerned and it is to be expected that many of them will simply want to ban it.

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

[KEPLER99]

Libra coin is just like another PayPal and that’s just how it is. It is mainly for transaction and it is not going to be like Bitcoin, because it’s not going to be volatile, it’s just going to be another stable coin. I have already seen a lot of big names jumping on it… but it wouldn’t like Bitcoin, it’s a whole different Bitcoin. The way I see it I might even make use of it, it’s not going to be of any use to me since I can make use of PayPal to send money to others so what’s the need for it? Unless maybe it will be important to those places where PayPal is not available, they can use it to send and receive money and also get paid online, cause lots of company are likely to accept it.

[Cnut237]

once Libra is established and even 'moderately' successful, they will make a run at Bitcoin in some manner to knock it down.

Facebook's standard approach when faced with a competitor is either a) buy it and make it a part of the Facebook empire, or b) steal the tech and grind the competitor into the dirt.

They can't buy control of bitcoin... (surely even FB wouldn't try to 51% it)

Open source is great so long as the people using it are great. This could turn into a big battle of centralised vs decentralised. Oh, I forgot - Libra will be decentralised and administered by Facebook the "independent" Libra Association. Hahahahahaha.

Our best hope against Libra is governments waking up and understanding that FB wants to rule the world, and then finally having the guts to legislate against what this company is doing. Would that hurt bitcoin and the rest of crypto? Difficult to say.

[Abiky]

I think people would choose facebooks coin very easily, it would be loved, it would be worshiped and used insanely, look at what venmo managed to do and they are not remotely close to facebook at all. The difference is crypto people wouldn't see it as a good thing, we may not like it but a regular Joe could potentially love the idea.

You are looking at it from the face value and how it is centralized and how it is controlling the data of your spending and all of that jazz we got to know but they are not looking at it that way, they are looking at it "I can just whatsapp you 50 bucks" type of deal and lets be honest that is quite cool to have that type of power compared to how hard it is to send 50 bucks globally in any normal way. So, don't get your hopes up about people not liking facebook, they will probably love it.

Maybe. If people become too concerned about their privacy (since Facebook has a reputation about it), then they wouldn't use Libra at a large scale. But, even after Facebook's latest privacy scandal, people seem to use its social network platform. This means that they don't care about their privacy, as long as, they receive convenience and ease of use. The same thing could happen with Libra, as people find it easy to send money with it worldwide.

Despite being a heavily centralized cryptocurrency, it'll provide many benefits such as instant transactions and the lowest fees possible. That's something which Bitcoin lacks, as its Lightning Network isn't ready yet. Of course, the main advantage of traditional cryptocurrencies like Bitcoin and Ethereum versus Facebook's Libra coin would be decentralization and censorship-resistance. But many people will choose convenience over censorship-resistance as we've suspected.

Nonetheless, Facebook's Libra cryptocurrency may become a success if it manages to comply with regulations worldwide and people adopt it at a large scale. However, knowing that central banks and governments have controlled Fiat for a long time, they would do their best to prevent this from becoming a reality anytime soon. Just my thoughts

[MidnightWolf]

Of course, the banking system and the government do not want to lose control over the money of their clients and citizens.  In any case, the libra becomes competitors.  But if the Facebook project becomes a reality, then all available information about users will be concentrated in one hand, that is, Facebook.

[aad140386]

I also did not really understand this post. But I am very skeptical about the Facebook project. I don’t like Facebook at all, and besides I don’t like that Facebook divulges customer data and transmits it to US intelligence. I personally do not intend to use the new cryptocurrency from Facebook. If we compare Libra and TON, then TON clearly has more advantages in that Pavel Durov does not issue any customer intelligence information in principle and protects the information of his customers. Facebook, on the contrary, almost openly works with the US special services.

[alyssa85]

What exactly is the use-value of Libra supposed to be anyway?? Just a "borderless" currency?

They want to replace western union and VISA fees.

In other words, the exact same use-value as bitcoin, but Zukerberg reckons he can do it better. And there is his rivalry with the Winklevoss twins in the mix there too.

[Abiky]

Of course, the banking system and the government do not want to lose control over the money of their clients and citizens.  In any case, the libra becomes competitors.  But if the Facebook project becomes a reality, then all available information about users will be concentrated in one hand, that is, Facebook.

Exactly. Every transaction made on Libra's ledger, will be easily tracked by Facebook itself. This will give them some level of control (even higher than ordinary Fiat like the USD) over the way people spend their money, where privacy is non-existent. For us crypto enthusiasts, Libra may well be a nightmare. But for the general audience it's not, as they believe that it's going to be the next big thing in our worldwide economy. Given that Libra hasn't launched yet, it's too early to tell if it's going to be a success.

Right now, there's a lot of hype surrounding Facebook's new cryptocurrency. People are eager to invest into Libra ASAP without even doing their own research about it. Eventually, Facebook will become the Bank 2.0 of the world if people (and governments) allow it. Regulators have the power to either restrict the growth of Libra, or devise laws that would contribute towards its longevity. On the other hand, Facebook is prepared to comply with every regulation to allow Libra's use to become widespread across the mainstream world.

Nonetheless, if Libra's launch becomes a success, then Facebook will effectively act as a central bank while Fiat's existence would be put at risk. But with many opposition from governments worldwide, it looks highly unlikely that this will go somewhere. Just my opinion

[Lanatsa]

Hope people read this.

There are a lot of people thinking that Libra will be another currency, another project wherein people can join their projects through their Bounty Campaigns and earn themselves some of it and sell it when it has a good price.

Indeed!

People mostly would see this as a money making opportunity rather than being serious on seeing its usage.
Profitability would always come to mind and even myself doesn't recognize on Libras coins existence which I do see it as
an another shitcoin in the market without having that actual usage and value.     

[TheCoinGrabber]

Wouldn't this Libra coin only be usable within the Facebook environment, meaning just FB, Insta and maybe some other apps?

I'm on the opinion that the mean reason for making this is for Facebook the be the main controller of digital identities. It's likely going to require KYC and from there Facebook would be able to eventually track EVERYTHING you do on the internet. I bet Google's gonna get pissed.

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.

Amen. Not to mention there are people who would bristle at the idea of a private company printing money.

[SirLancelot]

Of course, the banking system and the government do not want to lose control over the money of their clients and citizens.  In any case, the libra becomes competitors.  But if the Facebook project becomes a reality, then all available information about users will be concentrated in one hand, that is, Facebook.

Prior to the announcement of the Facebook coin, I have learnt through several sources that the government of America had called Facebook to enquire about the purpose of his cryptocurrency creation, and through this dialog, and for them to have been impressed with it or given their consent, then Facebook must have built an application that will favor the government and the financial institutions. With coin like Facebook, they will still be able to control their citizen money, but where Facebook coin will have issue is for it to be globally accepted.

Libra coin cannot be globally accepted, and I see Libra coin being accepted more in United State, if Libra coin is used globally, it will definitely exposed the data of certain people that not ought to be released to the government of United State, because I know that Libra coin will be fully operated on a centralized technology.

[tbterryboy]

No one ever said it is the new world currency, that’s not going to happen and anyone saying it is just being dumb. People just believes that the Libra coin might gain lots of attention and might make a lot of people to choose it as their payment method online, some even believes that there is every possibility that the new coin is going to put PayPal under, that’s if lots of companies starts to accept it and if it is also available in so many countries.We don’t even know that for sure, this is all hype and nobody is even sure about it. So I am just going to wait till the coin is released before I start believing anything about it

[Abiky]

No one ever said it is the new world currency, that’s not going to happen and anyone saying it is just being dumb. People just believes that the Libra coin might gain lots of attention and might make a lot of people to choose it as their payment method online, some even believes that there is every possibility that the new coin is going to put PayPal under, that’s if lots of companies starts to accept it and if it is also available in so many countries.We don’t even know that for sure, this is all hype and nobody is even sure about it. So I am just going to wait till the coin is released before I start believing anything about it

Libra might attract lots of people within the mainstream world, if it has a successful launch. However, it will never become the new world currency because governments won't allow that to happen. They always want to remain in control, and what better way to achieve it with their own national currency? (Fiat). No matter how good Libra will appeal to its users, it'll always be a centralized cryptocurrency subject to manipulation and fraud. That's why, Blockchain was created with the purpose of counteracting such effects.

A system which implements a single point of failure (centralization) is not a Blockchain, in my opinion. Libra could very well be the next generation of Banks (Banking 2.0) as it tries to overcome traditional payment processors such as VISA, MasterCard and Paypal. If it wins, then Libra would have nothing in its way except for decentralized cryptocurrencies and Fiat.

Still though, it looks unlikely that Libra will launch in the future as many governments and central banks are already opposing it. There's too much pressure worldwide (especially within the US), which will make it hard for Facebook to launch it's own cryptocurrency. After all, Facebook has been well-known of violating people's privacy. Giving it the power of tracking our daily transactions, will do no good for our society.

Therefore, the central bank of Facebook won't be able to stand a chance against giants such as governments and Banks worldwide. Just my thoughts

[whyrqa-1]

No one ever said it is the new world currency, that’s not going to happen and anyone saying it is just being dumb. People just believes that the Libra coin might gain lots of attention and might make a lot of people to choose it as their payment method online, some even believes that there is every possibility that the new coin is going to put PayPal under, that’s if lots of companies starts to accept it and if it is also available in so many countries.We don’t even know that for sure, this is all hype and nobody is even sure about it. So I am just going to wait till the coin is released before I start believing anything about it

People have a very negative attitude towards the banking system, but are thoughtlessly happy about the new project from Facebook.  It seems to me that even in this case, you need to be very careful not to create unnecessary problems for yourself.  Of course, I understand that Libra can be a real substitute for existing payment systems.