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Are they afraid? What happens the next time the pound takes a massive tumble down (again) during a Brexit like event? People might decide to convert their money

Are they afraid? What happens the next time the pound takes a massive tumble down (again) during a Brexit like event? People might decide to convert their money from pounds to Libra's. The Libra is based on a basket of currency's, much like the SDR governments use. It's potentially MORE stable than the pound. https://en.wikipedia.org/wiki/Special_drawing_rights https://en.wikipedia.org/wiki/Special_drawing_rights

CaptainZapp 7y ago
Why would they convert into a currency owned and controlled by a private company? A private company proven not to really care about morals? While it could absolutely be that the £ tumbles there are a number of stable currencies in which £ could be exchanged if people are worried that it loses value (that's value in relation to other currencies). ¨ The concept is called FOREX[1] and is not exactly new or revolutionary. [1] https://en.wikipedia.org/wiki/Foreign_exchange_market https://en.wikipedia.org/wiki/Foreign_exchange_market edit : wrong word
- digitalengineer 7y ago
  > Why would they convert into a currency owned and controlled by a private company Because if a bank runs the risk of failing (like BOTH of mine did in Holland) people freak out. Their bank accounts are suddenly a liability. If there is a fast and easy way to transfer money out of the banks, that would be a big plus. Even if you were to purchase dollars, they would still sit on your bank account.
  - CaptainZapp 7y ago
    And if there's any trouble with "cash" issued by a private company: Best of luck getting help from their "customer support". At least a bank is regulated and holdings are insured up to a certain amount.
  - gjulianm 7y ago
    > Because if a bank runs the risk of failing (like BOTH of mine did in Holland) people freak out Most EU countries have had deposit guarantees for a while (even before the crisis). It's an EU-wide rule since 2014 [0]. Would FB have that? Doubtful, as the deposit guarentees are provided by the governments that are in control of the currency. > If there is a fast and easy way to transfer money out of the banks What bank do you use that does not allow you to withdraw money? 0: https://ec.europa.eu/info/business-economy-euro/banking-and-finance/financial-supervision-and-risk-management/managing-risks-banks-and-financial-institutions/deposit-guarantee-schemes_en https://ec.europa.eu/info/business-economy-euro/banking-and-...
    - icebraining 7y ago
      > Would FB have that? According to them, yes: https://libra.org/en-US/about-currency-reserve/#the_reserve https://libra.org/en-US/about-currency-reserve/#the_reserve
      - gjulianm 7y ago
        It's not the same. A deposit guarantee is given by a third party, so that if Libra goes under or mismanages things I still cannot lose my money (up to a certain limit).
IAmEveryone 7y ago
You could just buy some (or one) of the currencies backing Facebook's Monopoly Money. A basket of major currencies is, purely logical, less risky than the same basket plus a layer of Facebook crypto-voodoo. Considering some rather beleaguered tech company's fancy new crypto-whatever to be more stable than currencies that have decades of rather benign market histories does not strike me as rational.
digitalengineer 7y ago
Edit: Not Great Britain, but Venezuela: "those who are banked currently face extreme levels of inflation, meaning the worth of their bolivars, sitting in national vaults, diminish in value every day. No doubt, having access to a stable global currency could help encourage savings and accumulate wealth."

CaptainZapp 7y ago

Why would they convert into a currency owned and controlled by a private company? A private company proven not to really care about morals? While it could absolutely be that the £ tumbles there are a number of stable currencies in which £ could be exchanged if people are worried that it loses value (that's value in relation to other currencies). ¨ The concept is called FOREX[1] and is not exactly new or revolutionary. [1] https://en.wikipedia.org/wiki/Foreign_exchange_market https://en.wikipedia.org/wiki/Foreign_exchange_market edit : wrong word

digitalengineer 7y ago
> Why would they convert into a currency owned and controlled by a private company Because if a bank runs the risk of failing (like BOTH of mine did in Holland) people freak out. Their bank accounts are suddenly a liability. If there is a fast and easy way to transfer money out of the banks, that would be a big plus. Even if you were to purchase dollars, they would still sit on your bank account.
- CaptainZapp 7y ago
  And if there's any trouble with "cash" issued by a private company: Best of luck getting help from their "customer support". At least a bank is regulated and holdings are insured up to a certain amount.
- gjulianm 7y ago
  > Because if a bank runs the risk of failing (like BOTH of mine did in Holland) people freak out Most EU countries have had deposit guarantees for a while (even before the crisis). It's an EU-wide rule since 2014 [0]. Would FB have that? Doubtful, as the deposit guarentees are provided by the governments that are in control of the currency. > If there is a fast and easy way to transfer money out of the banks What bank do you use that does not allow you to withdraw money? 0: https://ec.europa.eu/info/business-economy-euro/banking-and-finance/financial-supervision-and-risk-management/managing-risks-banks-and-financial-institutions/deposit-guarantee-schemes_en https://ec.europa.eu/info/business-economy-euro/banking-and-...
  - icebraining 7y ago
    > Would FB have that? According to them, yes: https://libra.org/en-US/about-currency-reserve/#the_reserve https://libra.org/en-US/about-currency-reserve/#the_reserve
    - gjulianm 7y ago
      It's not the same. A deposit guarantee is given by a third party, so that if Libra goes under or mismanages things I still cannot lose my money (up to a certain limit).

IAmEveryone 7y ago

You could just buy some (or one) of the currencies backing Facebook's Monopoly Money. A basket of major currencies is, purely logical, less risky than the same basket plus a layer of Facebook crypto-voodoo. Considering some rather beleaguered tech company's fancy new crypto-whatever to be more stable than currencies that have decades of rather benign market histories does not strike me as rational.

digitalengineer 7y ago

Edit: Not Great Britain, but Venezuela: "those who are banked currently face extreme levels of inflation, meaning the worth of their bolivars, sitting in national vaults, diminish in value every day. No doubt, having access to a stable global currency could help encourage savings and accumulate wealth."