5 ms·
Alright, let's say these people do have money to spend. Cryptocurrenices have existed for about a decade. Libra is supposed to solve the problem because it's ba
by JMTQp8lwXL 7y ago
Alright, let's say these people do have money to spend. Cryptocurrenices have existed for about a decade. Libra is supposed to solve the problem because it's backed by reserves? There are already tokens out there backed by real currencies (e.g., USDC). Why aren't these people using those? Surely, if they really wanted to buy the things Facebook is advertising, they would've found a way to get these tokens.
- carlosdp 7y agoThose other stable-coins don't have the level of capitalization FB is targeting, don't have buy-in from existing payment networks like Libra does (Visa, Mastercard, Paypal, Stripe, etc.), and don't have a massive network of already deployed apps that will surely integrate this (FB app, Whatsapp, etc.).
- JMTQp8lwXL 7y agoI don't necessarily see how that solves the problem, but I concur that these could be valid points (e.g., a higher market cap). Users still need a way to physically exchange their paper currency for Libra. Do employers switch to paying in Libra, so people having something to use within Facebook's platform? Will these people trust Libra more than their paper currency? I'm curious of what the migration strategy could possibly look like for the bankless.
- carlosdp 7y ago@JMTQp8lwXL That's a great question. I'm pretty sure enterprising locals will start up "exchange banks" that interface with larger "authorized resellers" that interface with the Libra Association to turn cash into Libra. So you would go to a local exchange and turn your cash into Libra.
- JMTQp8lwXL 7y agoSo, what the bankless need is banking services. This seems like a fairly convoluted way of bringing them to people. Visa, et. al could just set up shop in these areas, but they haven't yet. I guess this comes down to: 1. Are there enterprising individuals that see value in operating local exchanges for Libra <-> local currency? 2. Do Facebook's users in these areas see enough value in obtaining Libra (including the overhead transaction costs of switching to/from Libra) to be worthwhile, for access to goods/services that would otherwise be unavailable via local currency?
- carlosdp 7y agoWhat banking infrastructure would Visa build on in these areas? There are none, that's the problem! On the second point, we'll see, but Facebook and the rest of the Libra group seem convinced enough that there is to try, right?
- spaced-out 7y ago>Alright, let's say these people do have money to spend. They DO have money to spend, they've just been ignored by the digital economy. The "let's say" part of your comment shows why.
- JMTQp8lwXL 7y agoI disagree with this because cryptocurrencies have existed for nearly a decade. Nobody's telling people in third-world countries that have smartphones that they can't use cryptocurrencies.
- carlosdp 7y agoMost cryptocurrencies are too price volatile to be a store of value / transaction method, and most crypto currencies aren't directly supported by an app with 2.3b users (FB/Whatsapp).
- solotronics 7y agoIt's a matter of ease of use. All these people in the 3rd world have Facebook already on their phones, all of a sudden they will have a neat crypto currency wallet too and it's going to change everything.