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Economic rents is an issue, but how else would you incentivize member companies to join into Libra in the first place? The proven business models are "evil" to
by jyu 7y ago
Economic rents is an issue, but how else would you incentivize member companies to join into Libra in the first place?
The proven business models are "evil" to some population: 1. Charge fees (like paypal, stripe, bank ach / wires), 2. Collect interest via economic rents, or 3. Capture and monetize user data ala Facebook.
Can you think of a better way to jumpstart a new monetary network?
- hocuspocus 7y agoLaws and regulations in Europe have managed to make wire transfers and card payments cheap and efficient for both consumers and businesses.
- gridlockd 7y agoIt's not that cheap: https://en.wikipedia.org/wiki/Electronic_cash#Costs https://en.wikipedia.org/wiki/Electronic_cash#Costs You may think 0.3% isn't much, but with razor-thin profit margins (e.g. groceries) it does make a difference.
- hocuspocus 7y agoHandling cash isn't necessarily cheap either.
- gridlockd 7y agoYes, but we're not comparing cash, we're comparing one digital solution to another digital solution. Libra does have the potential to further reduce fees. Also, in order to use EC, you need a bank account, so it doesn't help the unbanked, which do exist even in Europe.