3 ms·

I have no financial background so forgive me if this is an ignorant question, but is there a way to treat runs that would expose insolvency (despite sufficient

I have no financial background so forgive me if this is an ignorant question, but is there a way to treat runs that would expose insolvency (despite sufficient and careful financial planning) like DDoS attacks that would expose an exhaustion of resources? I'm not saying Libra is good or bad. What I am interested in is how the article seems to focus on how a global currency could not stand up to a considerable proportion of users converting their holdings to a standard fiat currency. I just wonder if the technological aspect of the currency could help mitigate this in a similar way to how enterprises try to limit the impact of DDoS attacks on their systems. Again, I know nothing about finance. There may be a really good reason why this is not a good analogy that I just lack the understanding of. But I am certainly curious to learn if that's the case.

gus_massa 7y ago
One "solution" we tried here in Argentina in 2001 is the Corralito [koraˈlito] https://en.wikipedia.org/wiki/Corralito https://en.wikipedia.org/wiki/Corralito : Each day you can only extract a small amount of cash from the bank, but you can still transfer the money to another person/sucker using debit or credit cards or checks. [Note: It didn't end well.] The equivalent to cryptocurrencies is that you can only convert a small amount per day to hard money. With cryptocurrencies it is more difficult to enforce the restrictions "per person", but we had a few trick IRL here too.