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What I really don't get is the regulatory aspect. They are creating a financial derivative asset/instrument. To be moved across the borders. In what freaking un

What I really don't get is the regulatory aspect. They are creating a financial derivative asset/instrument. To be moved across the borders. In what freaking universe will the regulators not be all over it with endless KYC/ML rules?

bilbo0s 7y ago
You assume government regulators and policy makers were not in on it from the start.
- bufferoverflow 7y ago
  Looks like they were not. https://www.coindesk.com/halt-libra-us-lawmakers-call-for-hearings-on-facebooks-crypto https://www.coindesk.com/halt-libra-us-lawmakers-call-for-he...
joeyspn 7y ago
Not "endless", but chances are they'll simply apply "standard" money transmitter rules... and yes, that includes KYC/AML
- bufferoverflow 7y ago
  Have you ever bought/sold stocks or futures? The amount of paperwork you have to provide and to sign is not trivial. And then you're still quite limited in what you can do.
grey-area 7y ago
They'll pay lip service to KYC etc, and then hope to do an end run around regulation by becoming ubiquitous before it can be properly regulated. That's probably why they've chosen a blockchain (which is of negative value here technically) - to bamboozle regulators and avoid responsibility for managing it till it is too late to do anything about it.
AJ007 7y ago
There aren’t enough public details yet but I think the “blockchain” part is really just between all of the partners, not between the users. So when user A in the US sends to user B in Pakistan, the activity is really only between the two parties which converted the local currencies from the end users. That wouldn’t be particular different from user A sending a Western Union payment to user B in Pakistan. Conceivably Facebook has all of this user history and is able to make a guess if someone is a real person. Probably they know a lot more than a bank would know. That could take care of some aspects of the KYC issues too. Using the word cryptocurrency is fairly misleading, because as far as I can tell, it isn’t really one. Blockchain, maybe, but I don’t even know what that word means.
- justinmchase 7y ago
  Thats right, its not distributed like bitcoin but all of the nodes are "trusted" by each other and the block chain itself would only be accessible for users and you would not be able to add a node without being a massive corporation which invests and joins their consortium. No idea how new companies are supposed to rise with these players securing their monopoly like this.
vel0city 7y ago
Its Facebook. You don't have to submit anything for them to know their customer ;)

bilbo0s 7y ago

You assume government regulators and policy makers were not in on it from the start.

bufferoverflow 7y ago
Looks like they were not. https://www.coindesk.com/halt-libra-us-lawmakers-call-for-hearings-on-facebooks-crypto https://www.coindesk.com/halt-libra-us-lawmakers-call-for-he...

joeyspn 7y ago

Not "endless", but chances are they'll simply apply "standard" money transmitter rules... and yes, that includes KYC/AML

bufferoverflow 7y ago
Have you ever bought/sold stocks or futures? The amount of paperwork you have to provide and to sign is not trivial. And then you're still quite limited in what you can do.

grey-area 7y ago

They'll pay lip service to KYC etc, and then hope to do an end run around regulation by becoming ubiquitous before it can be properly regulated. That's probably why they've chosen a blockchain (which is of negative value here technically) - to bamboozle regulators and avoid responsibility for managing it till it is too late to do anything about it.

AJ007 7y ago

There aren’t enough public details yet but I think the “blockchain” part is really just between all of the partners, not between the users. So when user A in the US sends to user B in Pakistan, the activity is really only between the two parties which converted the local currencies from the end users. That wouldn’t be particular different from user A sending a Western Union payment to user B in Pakistan. Conceivably Facebook has all of this user history and is able to make a guess if someone is a real person. Probably they know a lot more than a bank would know. That could take care of some aspects of the KYC issues too. Using the word cryptocurrency is fairly misleading, because as far as I can tell, it isn’t really one. Blockchain, maybe, but I don’t even know what that word means.

justinmchase 7y ago
Thats right, its not distributed like bitcoin but all of the nodes are "trusted" by each other and the block chain itself would only be accessible for users and you would not be able to add a node without being a massive corporation which invests and joins their consortium. No idea how new companies are supposed to rise with these players securing their monopoly like this.

vel0city 7y ago

Its Facebook. You don't have to submit anything for them to know their customer ;)