4 ms·
What this truly mimics is a 'security' analogous to a basket of foreign currency traded as an ETF. Once you give them US $1 it is backed by a POOL of currency
by clearfund 7y ago
What this truly mimics is a 'security' analogous to a basket of foreign currency traded as an ETF. Once you give them US $1 it is backed by a POOL of currency from multiple countries (i.e. the other people who have traded their currency for Libra).
Once you decide to take your US $1 you will get back a different amount based on the underlying value of the pool based on the fluctuating FX market. May be >=<...no one will know.
Given they are seeking to bring in "underbanked" people (i.e. the charitable patina on this operation) there will be a focused % of currency in the pool from countries with a high % of underbanked people. Logic says this will likely be less stable currency than say the US $, etc.
Thus, your US $ will be diluted by "lesser" or more "volatile" currencies and will diminish the purchase power of your US $1. Conversely it will increase the purchase power of the lesser currency.
Thoughts?
- kodz4 7y agoFar far away from that point. Maybe when people start buying houses and paying their medical bills with it. Which is not going to happen if the Big Banks have anything to say about it. This is mostly going to be small change transactions for a couple years with lots of other players falling over each other with alternatives. As long as it makes global small change transactions free or dirt cheap should be a good thing.