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If it's pegged to multiple currencies, wouldn't that mean it's not stable against any currency?
by mullingitover 7y ago
If it's pegged to multiple currencies, wouldn't that mean it's not stable against any currency?
- gremlinsinc 7y agoThe goal I believe is to be 1:1 in multiple currencies (or maybe 0.9:1 or 1.1:1 as close as possible -- so if you were to buy libra with japanese yen it would cost 1:1, or possibly they'd do it based on the highest of the pegged currencies, so if euro is highest they'd go w/ 1:1 euro, then when you cash out to usd directly from libra, you'd go off the current euro:usd differential. It's definitely complicated, and I think going to be a management / development nightmare. The best thing would've been just go with USD, or Euro since those are the most used funds currently then have a built in forex exchange to instantly change local currencies to libra based on their usd/euro pairing rate.