Correct...in parts. Afaik, this is primarily a platform for zero-cost transactions (and if you live in an emerging market, a way to stop your govt stealing from

Correct...in parts. Afaik, this is primarily a platform for zero-cost transactions (and if you live in an emerging market, a way to stop your govt stealing from you). But you wouldn't need to charge rates on the Libra system...you still implement monetary policy as before because Libra is just a currency backed by other currencies. Given the currency shares announced though, it would potentially make monetary policy harder for non-US nations (i.e. EUR/GBP/JPY). My sense is that wouldn't be catastrophic but it would reinforce the position of the dollar/US monetary policy (as an example: if I am the ECB, I try to cut rates to zero then everyone just buys Libra until banks run out of money and force me to hike...this can work in reverse too where a big shock to the US economy can transmit through Libra globally...so functionally I think it would be very like a gold-exchange standard i.e. 1920-1970 but with USD as the exchange currency). Btw, this is why you saw European nations come out so strongly against this. SDRs are basically the same thing but the IMF overvalued the EUR in the basket...this is why central banks don't really use SDRs. Libra is kind of the opposite where you have a realistic weighting of EUR which is obviously less good for the EUR (although, again, no-one uses SDRs and they haven't helped the EUR become less of a bad currency). ...but yeah...it definitely is complex because the needs of consumers/corporates for low-cost transactions runs counter to the needs of monetary policy. I can see why govts oppose this and the likely end point is some better solution to reduce transaction costs (which Libra essentially is...but trying to create a reserve currency was...not a good idea...ppl have been trying this for centuries).