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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, an
by 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 agoThe 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 agoAre we sure those crypto developers are acting within the law? Genuine question.
- ngcc_hk 7y agoI 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 agoI'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 agoFor sure, the point is having conection to this cryptocurrencie network and a wallet. And its possible to exchange BTC for FBL also.
- tastroder 7y agoEven 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.
- deleted 7y ago[deleted]
- MrGman 7y agoWith Libra, Facebook wouldn't just make itself a bank. It would make itself a central bank. A world wide central bank. Libra = inventing a new fiat currency and then replacing a significant portion of other fiat currencies around the world through a cloak of "we're just here doing the next big thing, also App, p2p payments, online crypto AI blockchain social network Facebook innocent whistling of a song". As a little bonus, they would be selling the Libra nodes (that handle all the payment traffic) to third parties. Initially for 10 million USD per node. That way they can shift the blame of selling payment data to third parties away from Facebook, while still making money by giving third parties the right to do whatever they want with that payment data. Having a banking license doesn't allow you to replace a countries' fiat currency by some new invented token. The value of Libra in Europe would depend on a promise by an American tech company (led by 1 man). A promise to keep the value of the Libra tied to a predetermined basket of fiat currencies. Assuming that Libra would become popular, this would yield pretty much infinite international political and economical power to Mark Zuckerberg based on the mere perception of the possibility that this promise could be broken by him. This is also why Libra is not comparable to an actual crypto currency like Bitcoin. The value and existence of Bitcoin and the Bitcoin network is not dependent on 1 man and the contracts he has with Bitcoin nodes. Germany and France aren't stupid. I guess. Those are my thoughts on what's actually going on.
- tripzilch 7y agoHundreds of cryptocurrencies that aren't being operated by the most powerful social network corporation in the world. it's such a small distinction I can see how you choose to overlook it ...