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Your German example is a bit silly to use here given that its exchange rate is 1:1 with euros. There are other regional currencies in other countries, they don'
by speps 7y ago
Your German example is a bit silly to use here given that its exchange rate is 1:1 with euros. There are other regional currencies in other countries, they don't usually operate independently from the country's own currency though.
- aazaa 7y agoHow so? The Libra proposal kept its value constant with respect to a basket of currencies.
- kazen44 7y agobecause the german example is tied to the currency used by germany (and the eurozone as a whole).
- pjc50 7y agoNot quite the same kind of inflation hedge as "free floating" limited-issue cryptocurrencies then? (This is one of the things that confuses me about Libra's target market; if you believe the cryptocurrency marketing about privacy and permissionlessness and inflation-hedging, then Libra is terrible at those things. If you don't, and you're in Europe, you just use SEPA.)
- raverbashing 7y agoYou can only keep the value of something "constant" (or pegged to something) if it's not non-freely negotiable and you can tightly control it.
- joes_hk 7y agoAlso on the "money" you can read "Vereinsinterner Regio-Gutschein" which means that in a legal sense this is a voucher not a currency.
- detaro 7y agoPresumably, Facebook calling Libra "the Libra voucher system" wouldn't quite fix it though.
- lima 7y agoYes - you have to be a member of the Chiemgauer e.V. association in order to use or accept the vouchers, which is why it's called "vereinsintern", i.e. "internal to the association". It's not a general-purpose currency.
- Dylan16807 7y agoHave to? What happens if a random business accepts them for payment, and uses them for purchases at other accepting businesses?
- majewsky 7y agoIANAL, but the association giving out the vouchers would probably sue for fraud, since the merchant acts like a member of the association even though they are not.
- Dylan16807 7y agoThat is a very very strange thing to consider fraud! Imagine applying the same logic to someone that will trade their wares for baseball cards.