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> Libra may be the last best hope of the US to maintain its current level of influence in the international currency market Sorry- what's the connection here?

> Libra may be the last best hope of the US to maintain its current level of influence in the international currency market Sorry- what's the connection here? Libra will apparently be a basket of different major currencies, how does this benefit the US specifically? I say this as someone who would like to preserve dollar hegemony, I just don't see the connection

solotronics 7y ago
If the US doesn't take a lead in the fintech race China will take over the world. Imagine everyone in Africa, S.E. Asia, etc using Alipay. This takes away power from the US in control and de-dollarization.
- jasonjei 7y ago
  You raised an interesting point about Alipay. But I’ve had equally fast transactions with Apple Pay/Android Pay. Why not double down on NFC payment options coupled with desktop devices instead of building an Alipay alternative? If you’re using a credit card as source payment, you get a bank to protect your purchase and presumably some points or rebate? I understand cryptocurrency as potential replacement to wire transfers and cash payments. But as a consumer friendly choice, why would somebody choose to pay with crypto over NFC pay (with banks promising purchase protection when coupled with credit card)?
  - carlosdp 7y ago
    You can't use Apple Pay on top of a bank account that doesn't exist. 1.7b of the people in emerging markets don't have access to banking services. 500m+ of them have internet/cells and many have Facebook/WhatsApp. Hence Facebook's interest.
  - Lucadg 7y ago
    you, and I, represent a small fraction of the total addressa ble market. A huge chunk of the world does not have access to credit cards.
motohagiography 7y ago
Even though Libra will be HQ'd in Switzerland, FB control means US and State Dept. control by extension. If a Chinese company dominates payments for the unbanked, the dollar and SWIFT partners hegemony ends and that lever is much weaker. Social network payments will be a "radical monopoly," and the ability to manipulate exchange rates on that platform gives absolute power over import/export prices. Probably not something you want to yield.

solotronics 7y ago

If the US doesn't take a lead in the fintech race China will take over the world. Imagine everyone in Africa, S.E. Asia, etc using Alipay. This takes away power from the US in control and de-dollarization.

jasonjei 7y ago
You raised an interesting point about Alipay. But I’ve had equally fast transactions with Apple Pay/Android Pay. Why not double down on NFC payment options coupled with desktop devices instead of building an Alipay alternative? If you’re using a credit card as source payment, you get a bank to protect your purchase and presumably some points or rebate? I understand cryptocurrency as potential replacement to wire transfers and cash payments. But as a consumer friendly choice, why would somebody choose to pay with crypto over NFC pay (with banks promising purchase protection when coupled with credit card)?
- carlosdp 7y ago
  You can't use Apple Pay on top of a bank account that doesn't exist. 1.7b of the people in emerging markets don't have access to banking services. 500m+ of them have internet/cells and many have Facebook/WhatsApp. Hence Facebook's interest.
- Lucadg 7y ago
  you, and I, represent a small fraction of the total addressa ble market. A huge chunk of the world does not have access to credit cards.

motohagiography 7y ago

Even though Libra will be HQ'd in Switzerland, FB control means US and State Dept. control by extension. If a Chinese company dominates payments for the unbanked, the dollar and SWIFT partners hegemony ends and that lever is much weaker. Social network payments will be a "radical monopoly," and the ability to manipulate exchange rates on that platform gives absolute power over import/export prices. Probably not something you want to yield.