Can Libra Disrupt The Financial/Economic System?

[whyrqa]

A project like Libra will generally give users the opportunity to gain independence in managing their finances. Perhaps this is precisely the main problem for governments, and not some kind of impact on the economy

But that will inevitably have a huge impact on the world economy

With a lot of unintended consequences and complex ramifications since governments won't be anymore able to print money like there's no tomorrow (what the monetary use of virtually anything but fiat comes down to). This will mean the whole modern economics paradigm shift, not some minor changes here and there

This is what governments are scared of. Whether this paradigm shift will be for good or bad on the whole is another question, but what is beyond question here is the gravity of the situation if Libra or anything like it (read, Bitcoin) takes off for real (unlikely but still)

Anyway, I can’t understand why only the Libra project causes such indignation among most governments.  Even in some States of the United States, cryptocurrency and cryptocurrency exchanges are officially legalized, as evidenced by news from the Chicago Board of Trade, where Bitcoin futures trading starts.  Apparently, in this regard, the problem is resolved and other cryptocurrencies do not cause such a negative as a Facebook project.

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[Abiky]

Forget it, it's just hype and that's how it's meant to be. Facebook is a big company and people weren't really expecting them to dive into cryptocurrency. Though I do feel like it's going to make its way to the top, but not as a match for Bitcoin. Libra will get a boost because a lot of big names have adopted it. Companies like PayPal, eBay, Visa and more have coalesced to form the Libra association and it's going to help them up the chart.

I've come to learn that Libra will have features that will differentiate it from the regular cryptocurrency we know. For example, some people have claimed that we will be needing usernames for transactions with Libra, that's unlike Bitcoin and other cryptos that requires addresses to send and receive money. Another thing is that Libra is a centralized currency and Facebook will be in charge. For any institution to have access to their blockchain they will have to pay the sum of $10 million, wow!

That's mostly the reason for sure. So many people excited about Libra, without being launched yet. Right now, Facebook is having a hard time trying to comply with regulations worldwide. Central banks and governments worldwide have tried their best to put an end towards the development of Libra. With so much pressure from the world's most powerful nations, it's hard to believe that it'll launch anytime soon. Of course, the cryptocurrency has a great technology which is aimed for scalability. But what really matters is how useful and prominent it'll be within the mainstream world. By the looks of it, Libra will become another central bank 2.0. After all, it'll be a stablecoin pegged to the USD and several other Fiat currencies.

Things are even worse, as Libra is a permissioned Blockchain (which means it's centralized) unlike Bitcoin, Ethereum, and other public Blockchains within the mainstream world. Which is why, Libra's launch (if it ever happens) won't even pose a threat to decentralized crypto's existence. With all of these facts, it's hard to say that Libra will disrupt the entire economic system. But, Blockchain technology will, as it becomes adopted by worldwide governments in the future. Just my thoughts

[deisik]

A project like Libra will generally give users the opportunity to gain independence in managing their finances. Perhaps this is precisely the main problem for governments, and not some kind of impact on the economy

But that will inevitably have a huge impact on the world economy

With a lot of unintended consequences and complex ramifications since governments won't be anymore able to print money like there's no tomorrow (what the monetary use of virtually anything but fiat comes down to). This will mean the whole modern economics paradigm shift, not some minor changes here and there

This is what governments are scared of. Whether this paradigm shift will be for good or bad on the whole is another question, but what is beyond question here is the gravity of the situation if Libra or anything like it (read, Bitcoin) takes off for real (unlikely but still)

Anyway, I can’t understand why only the Libra project causes such indignation among most governments.  Even in some States of the United States, cryptocurrency and cryptocurrency exchanges are officially legalized, as evidenced by news from the Chicago Board of Trade, where Bitcoin futures trading starts.  Apparently, in this regard, the problem is resolved and other cryptocurrencies do not cause such a negative as a Facebook project

There is a simple explanation

Note, however, that it is not necessarily the only explanation possible as there can be many as many factors are involved with this currency. As Libra is essentially a tokenized dollar, it can't threaten the underlying asset itself (i.e. the dollar), so the point of discord lies elsewhere. And here's the crux of the matter. Libra won't be a competitor to the dollar but it will definitely compete with the payment systems based on the dollar, i.e. almost every payment system out there (Visa, MasterCard, Western Union, to name but a few). So it is not with the governments that it causes so much tension, indignation and irritation but rather with the lobbies of payment companies in these governments

[styca]

Yes, Libra has the potential to cause massive disruption, just because it has the might of Facebook behind it.

Whatever comes of this, I think it's pretty clear that Facebook's involvement in crypto will benefit Bitcoin and alts. It should help in the push towards mainstream adoption. Crypto is coming, and whenever a big company like Facebook gets involved, it raises the profile of all crypto and helps to make it more established in the minds of the general public.

Perhaps this will be the one time that Facebook gets pushed back, maybe governments will see it as a step too far and ban it. But crypto is coming, it will replace fiat, and this is just one of many incursions that will follow, pushing forward onto ground that fiat has claimed and thinks it controls forever.

[Abiky]

Yes, Libra has the potential to cause massive disruption, just because it has the might of Facebook behind it.

Whatever comes of this, I think it's pretty clear that Facebook's involvement in crypto will benefit Bitcoin and alts. It should help in the push towards mainstream adoption. Crypto is coming, and whenever a big company like Facebook gets involved, it raises the profile of all crypto and helps to make it more established in the minds of the general public.

Perhaps this will be the one time that Facebook gets pushed back, maybe governments will see it as a step too far and ban it. But crypto is coming, it will replace fiat, and this is just one of many incursions that will follow, pushing forward onto ground that fiat has claimed and thinks it controls forever.

It's true that Libra's prominence within the mainstream world, will greatly benefit the crypto industry as we know it. But I don't believe that Facebook's cryptocurrency will disrupt our economic system, because it'll largely depend on Fiat for its survival. Being a stablecoin, indicates us that Libra will never be an independent cryptocurrency like Bitcoin and Ethereum. It's more like a central bank which lives on the digital realm than anything else.

With many governments and central banks attacking Libra before launch, I doubt that it'll have a large prominence within the mainstream world. Facebook's vision of dominating the world's economy might not become a reality after all. I believe that the main disruptor of our world's economy will be Blockchain technology itself within the future. This is because governments will devise their own digital currency solutions backed by Blockchain tech. But of course, this will take a long time to become a reality as the world is not ready yet for digital money. Various companies and startups will come up with diverse solutions in order to improve our economy for the better. It may not be Facebook in the long run, but another company will (probably Ripple?) within a couple of years from now. Just my opinion

[jmigdlc99]

But I am wondering...is Libra really that potent that it can disrupt the currency financial system or are these people just imagining things which will never happen anyway? Are we ascribing power and influence on Mark Zuckerberg that can turn out to be a dud later?

Theres millions of active users, shops, services, and all sorts of monetizable things on facebook. When Facebook's Libra is launched everyone on the platform will be exposed to it and everyone will eventually use it. Imagine paying for everything online and paying with Libra.

Governments will lose oversight of people's spending habits and taxation would be a gray area. Yes, Libra can disrupt financial systems and thats why they are being met with so much opposition.

[bryant.coleman]

But I am wondering...is Libra really that potent that it can disrupt the currency financial system or are these people just imagining things which will never happen anyway? Are we ascribing power and influence on Mark Zuckerberg that can turn out to be a dud later?

Theres millions of active users, shops, services, and all sorts of monetizable things on facebook. When Facebook's Libra is launched everyone on the platform will be exposed to it and everyone will eventually use it. Imagine paying for everything online and paying with Libra.

Governments will lose oversight of people's spending habits and taxation would be a gray area. Yes, Libra can disrupt financial systems and thats why they are being met with so much opposition.

Since Libra is being launched by one of the largest corporations, even large online retailers such as Ebay and Amazon may accept payments made with this currency. Also, Facebook has enough monetary reserves to give good promotional offers for Libra. And this can attract hundreds of millions of users, if not billions. Libra will be the cryptocurrency equivalent of Uber or Lyft, and may be able to increase its market cap and user base rapidly once it is listed.

And I don't understand your post when you say that the government will lose oversight of people's spending habits. Because Libra is going to be a centralized cryptocurrency, and if the authorities want to track it, it is going to be even more easier than tracking the fiat cash (since the Libra wallets are linked to the Facebook accounts). The only worry from the government side should be that the USD can lose its own market share to Libra. But that should not bother them much. Afterall, Libra is just a digital version of the USD.

[ivakar]

I think main question is why Libra is created, what purposes it has. Who and what is behind Libra project. My thoughts are : because the world is rapidly changing and the role of fiat money could go down, people who are behind the feds could create and lead new trends.. ie.Libra could be a new dollar for a new world. Imagine how much control the owner of Libra could get .. all personal data from facebook + money people have, earns.
imagine an unprecedented level of control of the population.. scary//

[deisik]

Theres millions of active users, shops, services, and all sorts of monetizable things on facebook. When Facebook's Libra is launched everyone on the platform will be exposed to it and everyone will eventually use it. Imagine paying for everything online and paying with Libra

There seem to be a lot of ifs

If Libra becomes a sort of in-game currency (like many others out there in role-playing games) without a gateway to real world (read, we won't be able to convert it to fiat), it won't be of any particular help to all those users, shops and services. On the other hand, if it is exchanged freely to fiat as well as accepted everywhere on par with regular currencies (think PayPal, eBay, Amazon, etc here), it will be a game-changer for sure (and a cause of much pain in the ass for everything that it will compete with)

Also, Facebook has enough monetary reserves to give good promotional offers for Libra. And this can attract hundreds of millions of users, if not billions. Libra will be the cryptocurrency equivalent of Uber or Lyft, and may be able to increase its market cap and user base rapidly once it is listed

Should we thus be looking for libratalk.org soon ("make posts and earn")? Has one been registered yet?

[Murat]

Do you think like this really? Do you think that Libra is going shake off the economic system of the whole in the coming days if they can develop following it's planning? I also think so. Suppose, When Libra will get full phase and it will be used for many payments platform such as Uber, Visa, eBay and can even Apple, Microsoft and so on, then some of the monetary sectors will get controlled by Facebook and it will be a threat of the total global economy, but the USA government is not interested in giving the permission for their whole process and even lunching Libra's development, Government think it will make a massive impact on the monetary sector for a long term basis, but it's also true Facebook will create it by hook or by crook because they have a lot of potential diplomacy policy and people will get in touch with Libra for their purpose. let's see how it will play in the coming days?

[Xxmodded]

Many investor called fake with Libra coin because have announce last four months until today do not have planning when libra is can be open for the public, what coin kind is not have form until today, will start as an ICO or IEO project investment, I think libra only issue how to make bitcoin have negative feed back from many investor.

[Sithara007]

I think main question is why Libra is created, what purposes it has. Who and what is behind Libra project. My thoughts are : because the world is rapidly changing and the role of fiat money could go down, people who are behind the feds could create and lead new trends.. ie.Libra could be a new dollar for a new world. Imagine how much control the owner of Libra could get .. all personal data from facebook + money people have, earns.
imagine an unprecedented level of control of the population.. scary//

And this is exactly why the US senators are not very comfortable with the idea of Libra. During the senate hearing, it was asked to the Facebook representative whether there is a chance that Libra could replace the United States Dollar, or pose a competition to it. The reply from the FB representative was very evasive. Facebook already control a lot of personal information from billions of users around the world, and this includes phone number, email address, photos, locations, personal preferences .etc. Now Libra will give them access to information related to the finances as well.

[Vaculin]

I think main question is why Libra is created, what purposes it has. Who and what is behind Libra project. My thoughts are : because the world is rapidly changing and the role of fiat money could go down, people who are behind the feds could create and lead new trends.. ie.Libra could be a new dollar for a new world. Imagine how much control the owner of Libra could get .. all personal data from facebook + money people have, earns.
imagine an unprecedented level of control of the population.. scary//

Fiat going down, that seems to be impossible as long as long as we have the central bank who prints money for us, I mean, they are in control so they will dictate if they will allow fiat to be taken down. For me, if that is possible and people are already using crypto for good, I think even if the government are late, they will still create their own, regulate it and won't allow they don't have control of everything in the market.

[alyssa85]

Looks like Paypal is going to withdraw from the Libra project:

https://www.ft.com/content/6af11092-e5fd-11e9-9743-db5a370481bc

PayPal is on the verge of quitting Facebook’s Libra project after having pulled out of a key meeting in Washington on Thursday.

All 28 backers of Facebook’s plan for a new global digital currency were due to gather to discuss how Libra would tackle increasing opposition from regulators, but people familiar with the event said PayPal had not been present — the only one not to show.

A decision by the payments group to quit Libra would be a big blow for the project, which is being steered by David Marcus, a Facebook executive who was previously PayPal’s president.

One person close to PayPal said the company was concerned that Facebook has not done enough to address the backlash against the project, especially over money-laundering concerns.

“It doesn’t seem that there was a lot of pre-work done with regulators,” the person said. “[Payments] companies don’t want that [regulatory scrutiny] to bleed into their businesses.”

If they quit and others follow, I doubt Libra will even launch.

[Arsenyo]

I completely do not understand why there is so much fuss about Libra and how can this stable coin change the financial system of the world. I don't see any future for this coin. USA and France will not allow Libra to be used. Even paypal is on the verge of quitting Facebook's project.

[Sithara007]

Looks like Paypal is going to withdraw from the Libra project:

https://www.ft.com/content/6af11092-e5fd-11e9-9743-db5a370481bc

If they quit and others follow, I doubt Libra will even launch.

Libra is facing too much resistance and it looks to me that it is never going to realize. First, it was the American law makers who had issues with the project. And now even the partners such as Paypal are no longer interested in it and are looking for an honorable exit. It seems that many of these companies jumped in to the Libra bandwagon too soon, without thinking much about the consequences.

I really doubt whether Mark Zuckerberg has properly studied about the concept of cryptocurrencies. He wanted to take advantage of the hype surrounding Bitcoin and use it to remove the stagnation in the FB revenue growth. Also my guess is that he wanted to compete against Bitcoin, as his rivals (Cameron and Tyler Winklevoss) are well known supporters of BTC.

[alyssa85]

Libra is facing too much resistance and it looks to me that it is never going to realize. First, it was the American law makers who had issues with the project. And now even the partners such as Paypal are no longer interested in it and are looking for an honorable exit. It seems that many of these companies jumped in to the Libra bandwagon too soon, without thinking much about the consequences.

I really doubt whether Mark Zuckerberg has properly studied about the concept of cryptocurrencies. He wanted to take advantage of the hype surrounding Bitcoin and use it to remove the stagnation in the FB revenue growth. Also my guess is that he wanted to compete against Bitcoin, as his rivals (Cameron and Tyler Winklevoss) are well known supporters of BTC.

The issue is that nobody trusts Zuckerberg.

There have been too many problems with privacy, data being misused, data sold to companies without consent etc.

I think governments are OK with crypto as a stand alone.

But crypto that matches up with all your personal data, combined with a rogue company that will happily sell to advertisers not only who you are but how much money you have in your wallet - that's just too much and too dangerous.

[deisik]

Libra is facing too much resistance and it looks to me that it is never going to realize. First, it was the American law makers who had issues with the project. And now even the partners such as Paypal are no longer interested in it and are looking for an honorable exit. It seems that many of these companies jumped in to the Libra bandwagon too soon, without thinking much about the consequences.

I really doubt whether Mark Zuckerberg has properly studied about the concept of cryptocurrencies. He wanted to take advantage of the hype surrounding Bitcoin and use it to remove the stagnation in the FB revenue growth. Also my guess is that he wanted to compete against Bitcoin, as his rivals (Cameron and Tyler Winklevoss) are well known supporters of BTC.

The issue is that nobody trusts Zuckerberg

But then nobody should be using Facebook, right?

Actually, it doesn't really matter since "when money talks, bullshit walks". I mean people will turn deaf and blind as soon as they start to smell the easy money that Mark is going to offer them (or they come to think he is going to). They won't care about the dangers of losing their privacy, personal data being misused and sold to companies without their prior consent, or whatever. People are greedy and that's what would count and make all the difference in the end

But crypto that matches up with all your personal data, combined with a rogue company that will happily sell to advertisers not only who you are but how much money you have in your wallet - that's just too much and too dangerous

In fact, governments might be happier with that than with plain vanilla cryptocurrencies. If anything, it is the government that will get the first-hand access to all this wealth of personal information. So why should they resist if only for this reason alone?

[alyssa85]

If anything, it is the government that will get the first-hand access to all this wealth of personal information. So why should they resist if only for this reason alone?

How will the government get hold of all that personal information? Laws are in place that prevent them accessing it.

And if the govt can't get hold of it, they want to make sure that NOBODY can get hold of it, certainly not a rogue private company. Which is why they're going all out to stop Libra. While allowing bitcoin to continue.

[judeafante]

Lately, there is a big buzz and fuzz on the introduction of the new cryptocurrency (some called it as fake) called as Libra which is under the leadership and influence of the people behind the Facebook social media conglomerate. What resembled like a circus, politicians and other known personalities expressed apprehension that what Libra can bring will put the global financial and economic system under jeopardy and control of a select few men which I assumed the public don't trust.

But I am wondering...is Libra really that potent that it can disrupt the currency financial system or are these people just imagining things which will never happen anyway? Are we ascribing power and influence on Mark Zuckerberg that can turn out to be a dud later?

The latest news is Paypal just left the group, which in my opinion is good for the group and Libra Coin's cause, libra coin's reputation is dying because of bad perception by countries and companies, they treated it as a monster ready to prey anyone who comes their way, when they are in fact heavily regulated, and their hands are tied up because of this so many regulations.