Did Libra Protect The USD As The Reserve Currency?
Libra has the potential to be an instant success. With billions of accounts, it can provide people with instant banking.
In this video, I discuss how the project changed from a basket of fiat currency to just the USD. Since Libra has the potential of so many users, especially among the unbanked, this could further solidify the USD as the world's reserve currency.
▶️ 3Speak
0
0
0.000
Libra has acquired years after years a global market and with it has ensured a distribution channel for the future. This is why any product that Facebook comes with has a world wide distribution potential and access. And with them going into crypto could mean that the entire population from the world has access to an economy above all countries. How this will play with each country economy, what the value of Libra will be and how it could be used is something that we will need to see.
Posted Using LeoFinance Beta
Facebook has the numbers already and we have people who are fans of centralisation. Of course it has failed in the past I don't know maybe because the stakeholders in Facebook didn't allow it pass. But with the opportunity of instant banking I think people might want to embrace it even further.I think Facebook we don't have any problem pushing libra as something good to the general population of the world afterall who doesn't have a Facebook account?
Posted Using LeoFinance Beta
Hmmmm. What's the distribution model going to look like? Does giving all of Facebook access to Libra, make it an automatic success? Will accounts on Facebook be integrated onto the Libra Blockchain? That sounds like a task, unless you just start anew and have accounts link up. Info goes on the Blockchain from that point forward.
If Facebook accounts don't integrate, what makes it better than DAI or USDC? Sending Libra over the most unsecure platform doesn't sound like a good idea to me. Maybe it will to the masses, like PayPal? Maybe Zucks will use WhatsApp? I see the immense outreach but Facebook has too many issues to make it feel safe for me. I could see the US Gov stepping in and lending a hand, so to speak.
Posted Using LeoFinance Beta
All valid questions of which we do not know the answer so far.
However, I would speculate that it will all be tied to FB accounts. That is the only thing that makes sense. How hard would it be, even if you have people sign up for Libra, to have it using the FB account, which opens one up on the back end on blockchain. After all, this is what Leofinance is doing.
Without integration, I agree, it is probably worse than DAI or USDC because people have a lot of trouble trusting FB. There isnt a lot of appeal, I dont think, to those who are in crypto already.
However, this is the masses we are talking about so who knows.
Posted Using LeoFinance Beta
It seems weird either way. Facebook would need to have their own witnesses so they could skip blocks, or have some way to suppress publications. I's tough to imagine FB being decentralized and transparent. But like you said, who knows?
Posted Using LeoFinance Beta
Yea, I don't think it would be tough to integrate FB accounts with LIBRA. But to include all the past data. That's what I meant.
Posted Using LeoFinance Beta
No need to include the data since it will not be the FB posts that are posted on blockchain. It will only be the financial transactions, which are starting new going forward.
It will be more like Bitcoin in that regard than Hive. They are not interested in decentralizing or blockchaining their FB content. To them, it is more valuable on their own servers.
Posted Using LeoFinance Beta
Ahh. That makes more sense. Kinda what I was thinking. So your FB account would have a Libra wallet option.
I keep wondering about this supposed huge new social blockchain network... Revolution Populi. Their Twitter account is mostly silent and no new developments after the word about integrating EOS Witnesses.
HIVE is still so small. If we don't take off, I see another platform being able to come in and maximize this space.
Posted Using LeoFinance Beta
The reserve currency status of the US has little to do with how much it is printed or not. It's the distribution and the proliferation of financial products denominated in USD around the world. At the present moment, the USD has a clear lead in that department globally.
However, over a long period of time, the rest of the world will grow much faster than the US can (because of a much lower level most of the world is currently at), which means that the share of the US of the world economy will more closely reflect its share of the population of the world. I'm not predicting any kind of a collapse scenario. There will be a gradual shift towards a world with multiple centers of financial power with a much more even distribution of power.
Posted Using LeoFinance Beta
Congratulations @taskmaster4450le! You have completed the following achievement on the Hive blockchain and have been rewarded with new badge(s) :
You can view your badges on your board and compare yourself to others in the Ranking
If you no longer want to receive notifications, reply to this comment with the word
STOPA massive push libra is going to pull looking at the huge base it already have. Taking into consideration those massive facebook accounts and users and attention it's going to attract to itself. Anything less than a success for libra is a doubt for me
Posted Using LeoFinance Beta
Summary:
The video discusses the recent restructuring of Facebook's cryptocurrency, Libra, to be backed by the U.S. dollar instead of a basket of fiat currencies, which was the original plan. The speaker highlights the potential impacts of this change and how it could affect the global financial system, particularly in terms of the U.S. dollar's reserve status. The video speculates on the influence of Libra's global acceptance and usage on the solidification of the U.S. dollar as the reserve currency. It also touches on the accessibility of Libra to unbanked populations and the entry of Facebook into banking those individuals using a dollar-backed cryptocurrency.
Detailed Article:
The video delves into Facebook's unveiling of a new direction for its cryptocurrency, Libra, now backed by the U.S. dollar instead of a variety of fiat currencies as initially conceived. Task discusses the probable reasons for this shift, attributing it to regulatory pressures faced by Facebook, particularly in Europe. He points out the concerns of European regulators regarding the potential disruption Libra could cause to the global financial balance, especially considering the diverse currency basket initially proposed.
Task emphasizes the geopolitical implications of Facebook becoming a major holder of various currencies, which could have given them significant influence over governments. By transitioning to backing Libra with the USD, the potential for currency manipulation lessens, reducing concerns of playing currencies against each other, such as USD versus the Euro or the Yen.
He challenges the notion that the USD may lose its reserve status due to excessive printing, citing prolonged printing practices by the European Central Bank, the Federal Reserve, and other nations like China and Japan. Task underlines the importance of trust in a country's banking system for a currency's support, highlighting the advanced state of the U.S. banking system compared to others.
The video speculates on how Libra's widespread acceptance and usability could fortify the U.S. dollar's position as a global reserve currency. Task hints at the potential for Facebook, through Libra, to become a dominant financial institution worldwide, second only to the Federal Reserve. He contemplates the impact of Libra reaching billions of users due to Facebook's massive following, despite personal reservations about the platform.
Moreover, Task explores the possibility of Libra aiding in financial inclusion by reaching the unbanked population globally, potentially rivaling Chinese initiatives in African countries. Facebook's established presence in many nations and the accessibility of its platform through smartphones could facilitate banking for individuals in underserved regions, effectively introducing them to the U.S. dollar through a derivative like Libra.
In conclusion, the video outlines the transformative potential of Facebook's Libra and its alignment with the U.S. dollar, suggesting significant implications for the global financial landscape and access to banking for unbanked populations. Task prompts viewers to ponder the intricate dynamics at play and the future implications of these developments.