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This isn't progress, it's tossing out centuries of financial regulations, monetary theory, and power structures to give a consortium of businesses more power th

This isn't progress, it's tossing out centuries of financial regulations, monetary theory, and power structures to give a consortium of businesses more power than nations. They're trying to set up what is effectively a global, private central bank and replace the currencies of the world. If Libra actually does become the dominant world currency, a handful of individuals beholden to only to corporations and not to any nation can make decisions which affect all of humanity. They can cause hyperinflation spikes or prolong depressions with credit crunches. They can unilaterally cripple the finances of critics by removing their ability to process the currency and create an atmosphere where people are fearful of speaking out. They'll be able to control the actions of countries by making their entire economy dependent on processing the currency. Their actions could send all of humanity into desperate destabilization, and by the time you realize there's a problem it's too late. You can't undo, with regulation or anything, power of this scale. Also, the technology isn't permissionless, it's permissioned.[0] [0] https://libra.org/en-US/white-paper/#introducing-libra https://libra.org/en-US/white-paper/#introducing-libra

seibelj 7y ago
> This isn't progress, it's tossing out centuries of financial regulations, monetary theory, and power structures That is my definition of progress. I want experimentation, not being handcuffed to centuries of theory which can never be proven. Economics is not scientific, and I don't like the system we currently have. We need more private innovation and less state influence.
- ktosobcy 7y ago
  Yeah... let's silly silicon valley be even more disruptive... thanks to beloved FB we have lost privacy, airbnb ef-uped a lot of cities and uber and other gig-economies are chipping in to the downfall of society. thanks...
lhl 7y ago
If Libra does become a dominant currency, then I think it's monetary policy is actually the least impactful/most stabilizing one you could ask for. From https://libra.org/en-US/about-currency-reserve/ https://libra.org/en-US/about-currency-reserve/ : * Libra is "fully backed" by "a collection of low-volatility assets, including bank deposits and government securities in currencies from stable and reputable central banks" * "for new Libra coins to be created, there must be an equivalent purchase of Libra for fiat and transfer of that fiat to the reserve. Hence, the reserve will grow as users’ demand for Libra increases. In short, on both the investor and user side, there is only one way to create more Libra — by purchasing more Libra for fiat and growing the reserve." * "The association does not set monetary policy. It mints and burns coins only in response to demand from authorized resellers. Users do not need to worry about the association introducing inflation into the system or debasing the currency. For new coins to be minted, there must be a commensurate payment of fiat by resellers into the reserve. Through interaction with authorized resellers, the association automatically mints new coins when demand increases and destroys them when the demand contracts. Because the reserve will not be actively managed, any appreciation or depreciation in the value of the Libra will come solely as a result of FX market movements." Any changes to this require a supermajority vote by the association's council. Each member has one vote, the association is established as a Swiss non-profit. As to control of processing and monetary flow, I think it'll just reflect/perpetuate current power structures, but considering that Libra will make it easier for people to access/exchange competing coins (fiat or crypto), I don't see why it'll have less market pressure to function (as a medium of exchange) than any other currency.

seibelj 7y ago

> This isn't progress, it's tossing out centuries of financial regulations, monetary theory, and power structures That is my definition of progress. I want experimentation, not being handcuffed to centuries of theory which can never be proven. Economics is not scientific, and I don't like the system we currently have. We need more private innovation and less state influence.

ktosobcy 7y ago
Yeah... let's silly silicon valley be even more disruptive... thanks to beloved FB we have lost privacy, airbnb ef-uped a lot of cities and uber and other gig-economies are chipping in to the downfall of society. thanks...

lhl 7y ago

If Libra does become a dominant currency, then I think it's monetary policy is actually the least impactful/most stabilizing one you could ask for. From https://libra.org/en-US/about-currency-reserve/ https://libra.org/en-US/about-currency-reserve/ : * Libra is "fully backed" by "a collection of low-volatility assets, including bank deposits and government securities in currencies from stable and reputable central banks" * "for new Libra coins to be created, there must be an equivalent purchase of Libra for fiat and transfer of that fiat to the reserve. Hence, the reserve will grow as users’ demand for Libra increases. In short, on both the investor and user side, there is only one way to create more Libra — by purchasing more Libra for fiat and growing the reserve." * "The association does not set monetary policy. It mints and burns coins only in response to demand from authorized resellers. Users do not need to worry about the association introducing inflation into the system or debasing the currency. For new coins to be minted, there must be a commensurate payment of fiat by resellers into the reserve. Through interaction with authorized resellers, the association automatically mints new coins when demand increases and destroys them when the demand contracts. Because the reserve will not be actively managed, any appreciation or depreciation in the value of the Libra will come solely as a result of FX market movements." Any changes to this require a supermajority vote by the association's council. Each member has one vote, the association is established as a Swiss non-profit. As to control of processing and monetary flow, I think it'll just reflect/perpetuate current power structures, but considering that Libra will make it easier for people to access/exchange competing coins (fiat or crypto), I don't see why it'll have less market pressure to function (as a medium of exchange) than any other currency.