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How does Libra work? It sounds more like a traditional currency, except it isn't issued by a nation, but by a bunch of companies. The peg to a basket of currenc
by deafcalculus 7y ago
How does Libra work? It sounds more like a traditional currency, except it isn't issued by a nation, but by a bunch of companies. The peg to a basket of currencies suggests that it'll operate like a currency board regime. Do they completely give up monetary independence by backing every Libra with a dollar in reserve (or a basket of currencies)? Or is the plan to make Libra eventually float and have some decentralised mechanism to set interest rates?
- deafcalculus 7y agoThe TC article says that every Libra issued is backed by USD and other currencies in reserve. So, no independent monetary policy. This looks a whole lot more like full-reserve banking than a cryptocurrency. Are they calling it a cryptocurrency to avoid KYC requirements and other banking regulations?