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Facebook’s cryptocurrency is a centralized wolf in decentralized sheep’s clothing

By Quartz

Facebook is not eliminating subjective trust—it's imploring us to trust in LibraRead full story

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  • Interesting perspective. If Facebook wants to do the world a favor, it should make Libra anchored on a fixed amount of gold and not pegged to a "basket" that may change over time (yes, it's a new digital Bretton Woods).

    Facilitating instantaneous transnational money movement is great for banks, Wall

    Interesting perspective. If Facebook wants to do the world a favor, it should make Libra anchored on a fixed amount of gold and not pegged to a "basket" that may change over time (yes, it's a new digital Bretton Woods).

    Facilitating instantaneous transnational money movement is great for banks, Wall Street and kleptocrats all around the world. Proof of identity and source of funds can easily be disguised via shell companies and trusts...

  • Regardless of your opinions on the matter, I’m still just awestruck at how far crypto has come. The biggest players in the world are hopping on board, and borrowing the concepts and ideas the original cryptonerds have built over the last 10 years. I think this will be a great way to introduce the mass

    Regardless of your opinions on the matter, I’m still just awestruck at how far crypto has come. The biggest players in the world are hopping on board, and borrowing the concepts and ideas the original cryptonerds have built over the last 10 years. I think this will be a great way to introduce the mass public to cryptocurrency, but we should be cautious. This is NOT a fully decentralized cryptocurrency. Yes, it is more distributed than state controlled fiat. No, it is not nearly as decentralized as Ethereum. We’ll just have to wait and see how hard governments come at them for this bold of a move.

  • Joe has skin in the game here—and he's not afraid to put it on the line in this analysis of Libra.

    The emphasis and greatest power of decentralized currencies (and the blockchain as a whole) is the notion of trust. But rather than trusting in the technology underlying Facebook's system, the company

    Joe has skin in the game here—and he's not afraid to put it on the line in this analysis of Libra.

    The emphasis and greatest power of decentralized currencies (and the blockchain as a whole) is the notion of trust. But rather than trusting in the technology underlying Facebook's system, the company is asking for you to trust *them*. And that hasn't done so well in the recent past, has it?

  • To Joe's point as author, this is definitely not DeFi, the hip new name for decentralized finance. The reason why Wall Street investors are interested in the project is actually exactly the opposite of DeFi, because this ecosystem is a perfect manifestation of a monopolistic oligarchical consortium

    To Joe's point as author, this is definitely not DeFi, the hip new name for decentralized finance. The reason why Wall Street investors are interested in the project is actually exactly the opposite of DeFi, because this ecosystem is a perfect manifestation of a monopolistic oligarchical consortium. Moreover they are the catalytic Force as a consortium an ecosystem to drive tokenization and digital assets across Geoffrey Moore's chasm.

    The challenge however is that they are already facing an investigation from the FTC, and this ecosystem is actually perfect example of every consumer protection agent's dream because of its clear potential for anticompetitive business practices, and coercive monopolistic hegemony in the hands of a company and leader who has blatantly snubbed the FTC and other regulatory bodies including governments of Canada and EU. Counter-intuitively this is going to drive regulatory responses towards crypto and tokenization faster and the DeFi world needs to understand regulations just as much as the consortium FB has built does.

  • I would sooner accept beef jerky as currency.

  • Facebook is making a mistake out of the gate here. investment in instruments that make money that goes to bankers, but not users? Why the hell should we float Zuck an interest-free loan? The mumbo jumbo about banking the unbanked may bring tears to your eyes. All I do is smell money and BS. When he's

    Facebook is making a mistake out of the gate here. investment in instruments that make money that goes to bankers, but not users? Why the hell should we float Zuck an interest-free loan? The mumbo jumbo about banking the unbanked may bring tears to your eyes. All I do is smell money and BS. When he's ready to let all users share in the wealth generated by Libra, I will listen with great interest. Until then, caveat emptor.

  • Before this dragon is let loose there are a number of questions.

    What is the demand for crypto or is it an answer without a question?

    There are a series of trust issues.

    Is Facebook trustworthy?

    Are the partner companies trustworthy?

    Is the technology dependable?

    Is the technology secure?

    Is the

    Before this dragon is let loose there are a number of questions.

    What is the demand for crypto or is it an answer without a question?

    There are a series of trust issues.

    Is Facebook trustworthy?

    Are the partner companies trustworthy?

    Is the technology dependable?

    Is the technology secure?

    Is the software dependable and secure?

    Is the use of crypto legal in jurisdictions where it will be used or is this an end run attempt around national legislation? A very dangerous ploy.

    What is the opinion and legal stance of banking regulators?

    Back in the real world Facebook and its partners are using real money so annoying regulators will have real consequences.

    What collateral will be held in support? Banks have reserves and deposits what does Libra have ?

    A list of questions. Some of the answers are known I wonder what changes to the legal structure will be?

    This is not a unicorn they are pretty harmless . Dragons can burn everyone.

  • Does this qualify as a crypto? 🤔 Just confused as a layman. Looks like an extension to currency to me. Maybe I'm wrong altogether but we do this already, just not on facebook. How is different from my digital wallet? Something liberating? 🤔

  • I maybe wrong !!! currency needs much more than assurances and regulations it needs “trust” which ensures that it can be used and traded indefinitely. The “trust” is the power to control and enforce which is now held up by governments around the world. Governments hold this power for several reasons

    I maybe wrong !!! currency needs much more than assurances and regulations it needs “trust” which ensures that it can be used and traded indefinitely. The “trust” is the power to control and enforce which is now held up by governments around the world. Governments hold this power for several reasons because they have tools and agencies that ensure these transactions since the first currency was upheld by ancient governments. we look at cryptocurrency as a rebellion against governments yet it is still similar of credit cards when they originally started which were located, based and licensed by a government somewhere are the world. I believe that crypto currency like bitcoin had not reach as much as they intended because it did not have the publicity needed to expand. facebook may found a market niche here to mix crypto currency with its backbone of publicity around the world. This obviously makes Facebook a powerful currency holder as the US is a dollar holder with much influence around the world. Some times mixing oil with water is impossible yet having the power to have water and oil separately is much easier and much rewarding.

  • At one point in time nobody thought gold could be replaced; could the same be thought true about currency today?

  • Facebook seeks trust almost as quickly as it loses it.

    To think they'd have a hand in this payment tech and not use any personal info for their gain is wild.

    Go ahead. Tell us how "private" this is. 😊

  • Most of the comments I have read so far missed the crucial point: how will it really work and how Libra will be able to operate without holding a banking license?

    The way crypto are working are either tolerated or even illegal in many countries.

    How will work the change between a currency and the Libra

    Most of the comments I have read so far missed the crucial point: how will it really work and how Libra will be able to operate without holding a banking license?

    The way crypto are working are either tolerated or even illegal in many countries.

    How will work the change between a currency and the Libra? How will it work for non convertible currencies? Will the Libra accept Venezuelan peso to convert into Libra?

    If Libra would work it will pose a major threat to fragile economies by removing all capital inflow or outflow control directly or indirectly by de devaluation. We have seen in the past the dramatic effect of pegging an economy to a foreign currency. If the local economy is not performing, then you have no way adapt gradually. If there is not enough Libra in the country to keep the economy running, what do you do?

    I don't think that Libra is solving any of the world problems of today. Decreasing money transfer cost is regulatory problem and Libra will not solve but push it somewhere else.

  • How do you invest? With the current general untrusting sentiment perhaps a opportunistic time to buy Facebook shares at a good price. The problem about picking bottoms is one can get a stinky finger....

  • Permissioned or permissionless, that's always going to be question people will ask. Dies it really matter if it's eventually going to be the latter? Sometimes you do need to be the former to get things started. I met the founder of stealth start-up the other day. He his network is permissioned right

    Permissioned or permissionless, that's always going to be question people will ask. Dies it really matter if it's eventually going to be the latter? Sometimes you do need to be the former to get things started. I met the founder of stealth start-up the other day. He his network is permissioned right now , but he wants to go pure in a year or two n that is something he is very passionate about. VCs must agree to the terms or not invest.

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