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Those 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, Masterc

Those 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 ago
I 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 ago
  So, 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 ago
    What 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?

JMTQp8lwXL 7y ago

I 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 ago
So, 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 ago
  What 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?