- 22 Jun 2019 17:30
#15013648
The corporate partners include big names like Visa and Mastercard.
https://www.ft.com/content/aa97ad20-91a ... 9df1c62544
This article argues that Libra's success would disempower central banks in developing countries or those with weaker economies, as more people using Libra (which could be transferred freely and electronically) means less people using the local currency, which essentially takes power away from those countries' central banks and deposits that power with the Libra foundation.
While this is interesting, here's what I personally wonder. Obviously, the first step a country would take is to try and ban its citizens from using Libra. Second, this would potentially mean banning them from using things like Visa, Uber and so-on if those things use Libra. Third, either Libra fails to work internationally (as non-Libra versions of services are created) or else countries need to essentially sanction all Libra-friendly economic services. This would severely disrupt the world economy.
A less disturbing situation is that since Libra will be pegged to currencies like the US dollar and the Euro, the Libra essentially passes some control of western monetary policy away from government central banks (which are theoretically under the control of the people) and into the hands of private corporations. It'd be like living in a cyberpunk story or something. The potential for regulatory capture is of course huge.
I'm honestly amazed by the power grab that is being attempted here.
https://www.ft.com/content/aa97ad20-91a ... 9df1c62544
This article argues that Libra's success would disempower central banks in developing countries or those with weaker economies, as more people using Libra (which could be transferred freely and electronically) means less people using the local currency, which essentially takes power away from those countries' central banks and deposits that power with the Libra foundation.
While this is interesting, here's what I personally wonder. Obviously, the first step a country would take is to try and ban its citizens from using Libra. Second, this would potentially mean banning them from using things like Visa, Uber and so-on if those things use Libra. Third, either Libra fails to work internationally (as non-Libra versions of services are created) or else countries need to essentially sanction all Libra-friendly economic services. This would severely disrupt the world economy.
A less disturbing situation is that since Libra will be pegged to currencies like the US dollar and the Euro, the Libra essentially passes some control of western monetary policy away from government central banks (which are theoretically under the control of the people) and into the hands of private corporations. It'd be like living in a cyberpunk story or something. The potential for regulatory capture is of course huge.
I'm honestly amazed by the power grab that is being attempted here.
Orb Team Re-Assemble!
- By ingliz
- By wat0n