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I don't think Libra's collateralization is a hedge against fractional reserve monetary policy, I think it's just Facebook's way of ensuring consumer confidence

I don't think Libra's collateralization is a hedge against fractional reserve monetary policy, I think it's just Facebook's way of ensuring consumer confidence that a Libra is actually worth something, and the most proven way to peg a stablecoin to a value. I don't think this is necessary in a mature crypto economy where digital currencies are being used more than fiat currencies. I agree though that crypto monetary policy will play a huge role in the future though, and in the case of Libra, policy will be decided by the Libra Association. All I'm saying is that the Libra Association is not necessarily the best group to be making those decisions because collateralization is how they're funded. The US Fed doesn't have that same conflict of interest... they're paid by US taxes regardless of how their decisions turn out.

codetrotter 7y ago
> I think it's just Facebook's way of ensuring consumer confidence that a Libra is actually worth something, and the most proven way to peg a stablecoin to a value. Or even just to have people use it. I can’t afford to hold crypto right now because I don’t have any savings, only debt. But if there was a crypto that had a stable price and which was accepted by merchants, and I perceived it as trustworthy I’d use it for my purchases instead of using a credit card or debit card. Libra is not going to be it for me because I don’t trust Facebook and I don’t want them to have any involvement over my money. But I will admit that it has potential for a lot of the Facebook userbase to start using it.