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Investment is circulation though. They are no longer holding the $10 you spent to buy 10 Libra but $10 worth of Apple stock say that definitely isn't always wor
by rtkwe 7y ago
Investment is circulation though. They are no longer holding the $10 you spent to buy 10 Libra but $10 worth of Apple stock say that definitely isn't always worth $10 and Apple or whoever sold that stock now has $10.
- foobarian 7y agoThey could instead deposit it into their own bank, i.e. full reserve, and let the bank do the investing/recirculation itself which it is accredited to do.
- buboard 7y agoThey could be holding it in gold instead, what difference would it make ? You can probably take a loan with 100% gold deposit in any bank legally.
- wcoenen 7y agoAccording to the whitepaper at libra.org, they won't hold stocks. The reserve is a "basket of bank deposits and short-term government securities".
- rtkwe 7y agoThere's nothing binding about that proposed setup though. It wouldn't affect the function from the chain side so there's no real way to validate that that is what their doing outside of independent audits.