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It's not pegged to a dollar. It's pegged to a blend of currencies and assets. So it's not a dollar wrapped like Tether or USDC. I don't understand how they pla
by bufferoverflow 7y ago
It's not pegged to a dollar. It's pegged to a blend of currencies and assets. So it's not a dollar wrapped like Tether or USDC.
I don't understand how they plan to make it work across jurisdictions. There are so many laws and rules when it comes to transmitting and storing money or derivatives.
Like I can transfer a billion dollars worth of BTC, no problem. But if I try to wire even $100K between two of my accounts in US and EU, all kinds of red flags go off and phone calls need to happen.
- grey-area 7y agoThey plan to ignore regulations and grow quick enough so that they are too big to fail and thus too big to regulate.
- ninjin 7y agoIf you made this proposition to me a year ago, I would probably shrug it off. But after having read about several successful companies from the late 90s and early 00s doing exactly this – PayPal being a prime example – I think you may very well be right. Heck, one could even say that the current legal/lobbying fights between the internet giants and major states is exactly this.
- leppr 7y agoI think the point is to call their little consortium "decentralized" and let the various on-ramps (be it wallets, exchanges, merchants) deal with AML, just as if it were cash or Bitcoin. This is apparent in how their wallet Calibra is what requires KYC, not the crypto token itself.
- bufferoverflow 7y agoIt's so strange, I'm pretty sure they admit the whole thing is not decentralized.
- wongarsu 7y agoMany countries treat BTC as foreign currency, with all the regulations that come with that. It's not a major issue for the bitcoin community, since apart from taxes and money laundring protections you can mostly circumvent it by avoiding those jurisdictions as required. But Facebook/Libra would likely feel the full force of those regulations.