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What are Facebook redeeming? I don't think I'll need Facebook to transact with someone else for goods and services with stolen Libra. Goods can then be exchange

What are Facebook redeeming? I don't think I'll need Facebook to transact with someone else for goods and services with stolen Libra. Goods can then be exchanged for USD and the theft is complete. They can mint, and that's not a direct debit from Facebook's wallet, but it would devalue the currency ever so slightly. But that raises the question of 'How much needs to be stolen before I activate the minting process?' If they mint for low theft values, then I can find a way to steal from myself and that's probably a decent amount of passive income. If they only mint for high theft values, then that only helps rich people who suffer the least from theft (unless they cram all of their life savings into it). All of this depends on how Facebook works with law enforcement to manage the criminal parts of Libra. Working closely with them means we move closer to a corporate state. Working loosely with them means Libra is more vulnerable.

gruez 7y ago
>What are Facebook redeeming? I don't think I'll need Facebook to transact with someone else for goods and services with stolen Libra. Goods can then be exchanged for USD and the theft is complete. Right, they would also have to block the funds from being moved, which shouldn't be difficult since they control all the validating nodes. >They can mint, and that's not a direct debit from Facebook's wallet, but it would devalue the currency ever so slightly. If the funds are frozen, those funds are effectively out of circulation (similar to cash being destroyed or cryptocurrency wallets being lost), so that would cancel out any devaluing effects.
- 0xDEFC0DE 7y ago
  If they block funds, that'll essentially blacklist the address from doing transactions, so it might be possible to launder it through legitimate services (otherwise Facebook blocks an entire exchange's wallet from moving Libra, thus making that exchange halt and catch fire). What you'd need is a service that allows you to convert from Libra to an item/currency and then back to Libra, ideally with the ability to trade the intermediate item between users. This heads off into the unexplored territory. I don't think anyone knows how they're going to handle legit services that launder Libra on the side.

gruez 7y ago

>What are Facebook redeeming? I don't think I'll need Facebook to transact with someone else for goods and services with stolen Libra. Goods can then be exchanged for USD and the theft is complete. Right, they would also have to block the funds from being moved, which shouldn't be difficult since they control all the validating nodes. >They can mint, and that's not a direct debit from Facebook's wallet, but it would devalue the currency ever so slightly. If the funds are frozen, those funds are effectively out of circulation (similar to cash being destroyed or cryptocurrency wallets being lost), so that would cancel out any devaluing effects.

0xDEFC0DE 7y ago
If they block funds, that'll essentially blacklist the address from doing transactions, so it might be possible to launder it through legitimate services (otherwise Facebook blocks an entire exchange's wallet from moving Libra, thus making that exchange halt and catch fire). What you'd need is a service that allows you to convert from Libra to an item/currency and then back to Libra, ideally with the ability to trade the intermediate item between users. This heads off into the unexplored territory. I don't think anyone knows how they're going to handle legit services that launder Libra on the side.