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Is there some legal shield that prevents regulators from simply saying that Libra is a bank and therefore subject to regulation as such?
by giaour 7y ago
Is there some legal shield that prevents regulators from simply saying that Libra is a bank and therefore subject to regulation as such?
- rolltiide 7y agoNo, not really. In various economic regions there can be regulators that rule this way but they won't be able to stop the commerce from happening with this currency. The Libra Foundation can also just register banks in local jurisdictions to check a box. Many incumbent services have done this for decades, like Paypal. Cryptocurrency removes the ability of the state to whitelist transactions, as their power only existed from being able to regulate an intermediary. This is the anti-fragile nature of cryptocurrency. Facebook's validator nodes (corporate consortiums) are a compromise on the anti-fragile nature, but not by much.
- drcode 7y agoIf the state can't whitelist transactions, FB will likely not be permitted to launch this currency- The state has every incentive to block any banks from doing business with FB in that case, because they'll invoke terrorist financing and drug sales as blocking issues.