4 ms·

> 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

> 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).