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this make zero sense. are they going to let anyone mine the coins? probably not. if its just them mining it, then its totally pointless.

thaumasiotes 8y ago
On the contrary. If facebook controls minting the coins but can't control transactions using the coins, it'd be perfect, much better than the decentralized cryptocoins we have today. It would instantly bypass state controls on money transmission. They'd probably run into trouble cashing out their coins in that case, though.
- afasfdsasdf 8y ago
  If facebook controls the mining, then they have the power to change the blockchain, which in effect would defeat the whole point. They effectively have a database with some very unnecessary complexity. It wouldn't bypass state controls because they would still need to abide by laws.
  - coralreef 8y ago
    I don't think the purpose is to create their own money, but to create a vehicle that takes advantage of crypocurrency-like protocols. For example, perhaps they'll let users generate their own keys, thereby letting everyone transact freely with each other. This may allow FB to wash their hands of KYC laws except for those depositing and withdrawing fiat directly.
    - rebuilder 8y ago
      Facebook would still be maintaining the ledger, which means there's no such thing as letting everyone transact freely with each other. It's like the bank saying they're not liable for KYC procedures because it's their customers who initiate the transactions.
- m-i-l 8y ago
  I'd rather have state control over money than for-profit megacorps, especially one with such an appalling reputation as "They 'trust me', dumb f---s" F--ebook. This is one of the issues they're finding with the move to a cashless society in the Nordic countries[0], i.e. the monopoly over money moving from the state to the private sector. [0] https://www.weforum.org/agenda/2018/11/sweden-cashless-society-is-no-longer-a-utopia/ https://www.weforum.org/agenda/2018/11/sweden-cashless-socie...
  - thaumasiotes 8y ago
    > If facebook controls minting the coins but can't control transactions using the coins
    - lawlessone 8y ago
      if only facebook can mine, then they choose do whatever they want, the blockchain just becomes a weird centralized database
      - thaumasiotes 8y ago
        Why? Creating coins and transferring coins are completely separate things. They're intertwined, in bitcoin, because bitcoins are created in transfers. But there's no fundamental reason for that to be the case.
mihaifm 8y ago
stablecoins aren’t mined, they are created by the issuer at their discretion. Technically they should create a coin for every deposited dollar, but I wouldn’t be surprised if Tether or other stablecoins run a fractional reserve scheme behind the scenes.

thaumasiotes 8y ago

On the contrary. If facebook controls minting the coins but can't control transactions using the coins, it'd be perfect, much better than the decentralized cryptocoins we have today. It would instantly bypass state controls on money transmission. They'd probably run into trouble cashing out their coins in that case, though.

afasfdsasdf 8y ago
If facebook controls the mining, then they have the power to change the blockchain, which in effect would defeat the whole point. They effectively have a database with some very unnecessary complexity. It wouldn't bypass state controls because they would still need to abide by laws.
- coralreef 8y ago
  I don't think the purpose is to create their own money, but to create a vehicle that takes advantage of crypocurrency-like protocols. For example, perhaps they'll let users generate their own keys, thereby letting everyone transact freely with each other. This may allow FB to wash their hands of KYC laws except for those depositing and withdrawing fiat directly.
  - rebuilder 8y ago
    Facebook would still be maintaining the ledger, which means there's no such thing as letting everyone transact freely with each other. It's like the bank saying they're not liable for KYC procedures because it's their customers who initiate the transactions.
m-i-l 8y ago
I'd rather have state control over money than for-profit megacorps, especially one with such an appalling reputation as "They 'trust me', dumb f---s" F--ebook. This is one of the issues they're finding with the move to a cashless society in the Nordic countries[0], i.e. the monopoly over money moving from the state to the private sector. [0] https://www.weforum.org/agenda/2018/11/sweden-cashless-society-is-no-longer-a-utopia/ https://www.weforum.org/agenda/2018/11/sweden-cashless-socie...
- thaumasiotes 8y ago
  > If facebook controls minting the coins but can't control transactions using the coins
  - lawlessone 8y ago
    if only facebook can mine, then they choose do whatever they want, the blockchain just becomes a weird centralized database
    - thaumasiotes 8y ago
      Why? Creating coins and transferring coins are completely separate things. They're intertwined, in bitcoin, because bitcoins are created in transfers. But there's no fundamental reason for that to be the case.

mihaifm 8y ago

stablecoins aren’t mined, they are created by the issuer at their discretion. Technically they should create a coin for every deposited dollar, but I wouldn’t be surprised if Tether or other stablecoins run a fractional reserve scheme behind the scenes.