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Facebook's New 'Libra' Cryptocurrency

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  • Facebook's New 'Libra' Cryptocurrency

    From https://www.thejakartapost.com/life/...ibra-coin.html , 19 June 2019
    Agence France-Presse
    Title : Facebook takes on the world of cryptocurrency with 'Libra' coin

    [Facebook unveiled plans Tuesday for a new global cryptocurrency called Libra, pledging to deliver a stable virtual money that lives on smartphones and could bring over a billion "unbanked" people into the financial system ... backed by financial and nonprofit partners ... The nonprofit Libra Association based in Geneva will oversee the blockchain-based coin, maintaining a real-world asset reserve to keep its value stable ... give people access to money and opportunity at the lowest cost, the way the internet itself did in the past with information ...

    Facebook will be just one voice among many in the association, but is separately building a digital wallet called Calibra.

    Libra Association debuted with 28 members including Mastercard, Visa, Stripe, Kiva, PayPal, Lyft, Uber and Women's World Banking.

    Real-world currency will go into a reserve backing the digital money, the value of which will mirror stable currencies such as the US dollar and the Euro, ... local currencies and Libra may be swapped at currency exchange houses or other businesses ...]
    Last edited by marcus; 27-03-20, 14:20.

  • #2
    I really hope it woks cheaply . It is an absurd that these poor people working abroad lose , in many cases , more than 10% of the money they send back to their families to banks and/or companies like Western Union . Although companies like TransferWise already made a big difference , still it does not cover many countries .

    In my country there is a kind of cartel (banks and money changers) that charges around 5% to exchange our currency to USD (the cheapest way to send abroad) . In comparison , in Indonesia I change USD to Indonesian currency (or vice-versa) for as low as 0.12 % cost . So this is the cost that is possible (around 0.25% from one country to another , except major currencies which would be half the cost) .

    So as one example , compare of what is possible (0.25%) with what TransferWise (the cheapest I know for my specific country) would charge me : 2.5% , a 10 times saving .
    Last edited by marcus; 19-06-19, 12:48.

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    • #3
      There has been other attempts to solve the cross border remittances via cryptos, but till now, the adoption was not as extensive as the crypto creators has been expecting. It is quite hard to solve the adoption problem when there is a system which sucks the people in need (banks, money changes, remittance companies), so hopefully Libra may help with this, backed up by Facebook... But again it is very likely that gov'ts won't be so into enable regulations to accept cryptos with the national currencies, that people will be either forced to use exchanges to exchange their cryptos into fiat or even the exchanges might be banned, as cartels would put pressure on gov't and regulators.

      Let's wait and see what happens

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