6 ms·

Isn't the answer better consumer protections, though? Rather than a ban on new technology that threatens the status quo. If Facebook wants to be a bank, they

by nugget 7y ago

Isn't the answer better consumer protections, though? Rather than a ban on new technology that threatens the status quo. If Facebook wants to be a bank, they should be subject to the banking regulators and there could be (should be) strong consumer protections preventing the type of corporate behavior you describe.

adolph 7y ago
Doesn’t that just shift the controls on corporate behavior and consolidate the controls into a political process? https://en.wikipedia.org/wiki/Operation_Choke_Point https://en.wikipedia.org/wiki/Operation_Choke_Point
- tripzilch 7y ago
  which is where you want it, because FB doesn't exactly have a good track record when it comes to customer protection, compared to most EU countries. in fact their track record is both worse and laughably shorter.
zaphirplane 7y ago
I feel there is a conflation here. Facebook is free to apply for a banking license in countries they want to operate as a bank in. Facebook shouldn’t be able to circumvent banking over site and regulations by coming in as a technology company with fancy words. The conflation here is Facebook isn’t being blocked form becoming a licensed bank in Germany - correct me if I’m wrong
- lacker 7y ago
  But they don’t want to become a bank. They want to build a cryptocurrency. There are already hundreds of cryptocurrencies that operate in France and Germany, and the developers do not have to have banking licenses.
  - torgian 7y ago
    The difference is that Facebook has millions to pour into resources, marketing, etc, while those other crypto currency companies do not. I would be very very wary of a social media giant issuing crypto. Lots of inherit dangers there.
    - brokenmachine 7y ago
      *inherent dangers
  - colejohnson66 7y ago
    Are we sure those crypto developers are acting within the law? Genuine question.
  - ngcc_hk 7y ago
    I have the same question in my first reaction. But then other than some bank owned one, they are not controlled by anyone. Can you access and exchange libra without Facebook account or banned Facebook account
    - martinbooth 7y ago
      I'm pretty sure you can. They're building a wallet, but it's not the only one. It's also separate to the rest of Facebook but likely would integrate with it well
    - otroqueccorre 7y ago
      For sure, the point is having conection to this cryptocurrencie network and a wallet. And its possible to exchange BTC for FBL also.
  - tastroder 7y ago
    Even if they don't fall within the traditional banking definition, which I have doubts about, they'd at least play the role of the exchange or broker and as such are subject to, at least, authorization through BaFin in Germany. Random hipsters buying BTC privately and Facebook attempting to erode traditional currencies are two wildly different things.
afiori 7y ago
The point is that not even a German bank would be allowed to do what Facebook plans to do.
imnotlost 7y ago
Europe already has great consumer protections. The US doesn't, and probably never will.
lostjohnny 7y ago
Yes. They can. In Euros. Thanks. p.s.: they are already applying for it, PSD2 regulation allows them to emit cards or be intermediaries for payments. No foreign fake, unregulated, privately conrolled currencies here in Europe, thank you.
tripzilch 7y ago
> there could be (should be) strong consumer protections preventing the type of corporate behavior you describe there's not a snowflake's chance in hell that a megacorporation like Facebook is going to provide strong customer protections on a long-term basis, compared to what a EU country can provide its citizens. how can you even begin to trust something that big, that has been around for such a short time (~2 decades?). remember 15 years ago when people thought Google was cool and "one of us / the good guys" and way more trustworthy than most things on the Internet? it's a long time on the Internet, but it's a blip in history when it comes to trust in state regulations and consumer protection.

by nugget 7y ago

adolph 7y ago

Doesn’t that just shift the controls on corporate behavior and consolidate the controls into a political process? https://en.wikipedia.org/wiki/Operation_Choke_Point https://en.wikipedia.org/wiki/Operation_Choke_Point

tripzilch 7y ago
which is where you want it, because FB doesn't exactly have a good track record when it comes to customer protection, compared to most EU countries. in fact their track record is both worse and laughably shorter.

zaphirplane 7y ago

I feel there is a conflation here. Facebook is free to apply for a banking license in countries they want to operate as a bank in. Facebook shouldn’t be able to circumvent banking over site and regulations by coming in as a technology company with fancy words. The conflation here is Facebook isn’t being blocked form becoming a licensed bank in Germany - correct me if I’m wrong

lacker 7y ago
But they don’t want to become a bank. They want to build a cryptocurrency. There are already hundreds of cryptocurrencies that operate in France and Germany, and the developers do not have to have banking licenses.
- torgian 7y ago
  The difference is that Facebook has millions to pour into resources, marketing, etc, while those other crypto currency companies do not. I would be very very wary of a social media giant issuing crypto. Lots of inherit dangers there.
  - brokenmachine 7y ago
    *inherent dangers
- colejohnson66 7y ago
  Are we sure those crypto developers are acting within the law? Genuine question.
- ngcc_hk 7y ago
  I have the same question in my first reaction. But then other than some bank owned one, they are not controlled by anyone. Can you access and exchange libra without Facebook account or banned Facebook account
  - martinbooth 7y ago
    I'm pretty sure you can. They're building a wallet, but it's not the only one. It's also separate to the rest of Facebook but likely would integrate with it well
  - otroqueccorre 7y ago
    For sure, the point is having conection to this cryptocurrencie network and a wallet. And its possible to exchange BTC for FBL also.
- tastroder 7y ago
  Even if they don't fall within the traditional banking definition, which I have doubts about, they'd at least play the role of the exchange or broker and as such are subject to, at least, authorization through BaFin in Germany. Random hipsters buying BTC privately and Facebook attempting to erode traditional currencies are two wildly different things.

afiori 7y ago

The point is that not even a German bank would be allowed to do what Facebook plans to do.

imnotlost 7y ago

Europe already has great consumer protections. The US doesn't, and probably never will.

lostjohnny 7y ago

Yes. They can. In Euros. Thanks. p.s.: they are already applying for it, PSD2 regulation allows them to emit cards or be intermediaries for payments. No foreign fake, unregulated, privately conrolled currencies here in Europe, thank you.

tripzilch 7y ago

> there could be (should be) strong consumer protections preventing the type of corporate behavior you describe there's not a snowflake's chance in hell that a megacorporation like Facebook is going to provide strong customer protections on a long-term basis, compared to what a EU country can provide its citizens. how can you even begin to trust something that big, that has been around for such a short time (~2 decades?). remember 15 years ago when people thought Google was cool and "one of us / the good guys" and way more trustworthy than most things on the Internet? it's a long time on the Internet, but it's a blip in history when it comes to trust in state regulations and consumer protection.