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Facebook: Meet "Libra" and "Calibra"

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  1. #1

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    Facebook: Meet "Libra" and "Calibra"

    So... Facebook seems to be closer to achieving global domination, with the introduction of a new "currency" called Libra and a financial services and "wallet" company called "Calibra".

    The currency is designed not to be a speculative asset, like Bitcoin, but a form of digital money backed by a reserve of assets. You will one day be able to use Libra as payment for online and offline services, Facebook executives say. At the beginning, the company imagines Libra will be used mainly to transfer money between individuals in developing countries who lack access to traditional banks. Eventually, the goal is to create the first truly mainstream cryptocurrency: a decentralized global form of payment that is as stable as the dollar, can be used to buy almost anything, and can support an entire range of financial products from banking to loans to credit.
    https://www.theverge.com/2019/6/18/1...allet-announce

    and

    Its called Calibra, and its a new subsidiary of Facebook the company is launching to build financial services and software on top of the Libra blockchain. At first blush, Calibra resembles a fairly standard payments company but its tight integration with Facebooks enormous user base could give it a significant advantage over any rivals. Thanks to its proximity to the technical development of Libra, and its ability to leverage WhatsApp, Messenger, and Instagram, Calibra could very well become Facebooks next big thing.

    Calibras immediate goal is to develop and launch its own digital cryptocurrency wallet, and integrate that wallet into other Facebook products
    https://www.theverge.com/2019/6/18/1...rcus-interview

  2. #2

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    I have yet to hear a convincing explanation as to why anybody would prefer to do legitimate business using crypto currencies instead of established fiat currencies and I'm not seeing anything in the press releases or commentary that would make Libra any different from the many cryptocurrencies that have gone before it.


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    What is different (and good & bad) about Libra is that it is a Facebook product and can be integrated with Whatsapp and Instagram.

    And we all know how keen the economies of the world are to hand over control of their news, political systems, discourse, financial systems and just about everything else to Facebook.


  4. #4

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    Quote Originally Posted by traineeinvestor
    I have yet to hear a convincing explanation as to why anybody would prefer to do legitimate business using crypto currencies instead of established fiat currencies
    Instant global transfers at almost zero cost. It's a game changer. How many threads on Geoexpat alone do we see asking about international transfers every week?

  5. #5
    er2
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    Quote Originally Posted by TheBrit
    Instant global transfers at almost zero cost. It's a game changer. How many threads on Geoexpat alone do we see asking about international transfers every week?
    Almost zero cost roflmao. I dont think the transfer is the actual problem (my HSBC transfers to the US are near instant and costing less than any bitcoin ledger entry these days). Transferring large amount from one currency to another is where it hurts, and thats a problem youll have twice going in and out of crypto.

    If Libra grows big (I guess it will) itll be because of the gain in convenience of paying grandma back home via WhatsApp, not because it will be substantially cheaper than what financially savvy people can now get.
    traineeinvestor likes this.

  6. #6

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    But will that actually be what happens? Existing crypto currencies have been outright scams and are materially less efficient than conventional currencies (especially after taking into account the cost of converting into and out of the cryptocurrency) ... and that's without all the losses from failed exchanges, lost wallets etc.

    I'm struggling to understand why Libra will be any different? I'll still incur costs and substantial price risk converting into and out of Libra to make a transaction as well as the risk of holding it in a virtual wallet (far risker than a bank account). And unless and until I can buy groceries, pay taxes and all my other expenses with Libra I will have to convert so I won't just buy and hold Libra.


  7. #7

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    Quote Originally Posted by er2
    Almost zero cost roflmao. I dont think the transfer is the actual problem (my HSBC transfers to the US are near instant and costing less than any bitcoin ledger entry these days). Transferring large amount from one currency to another is where it hurts, and thats a problem youll have twice going in and out of crypto.

    If Libra grows big (I guess it will) itll be because of the gain in convenience of paying grandma back home via WhatsApp, not because it will be substantially cheaper than what financially savvy people can now get.
    I wasn't talking about bitcoin. There are plenty of other current and future cryptocurrencies. Might not hurt to educate yourself first before chipping in

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    And unless and until I can buy groceries, pay taxes and all my other expenses with Libra I will have to convert so I won't just buy and hold Libra.
    As soon as you start thinking of Facebook as a nation / state with a population of a few billion, you'll either put some money into your Libra wallet, or you'll put your money in Gold and buy a bunker. Regardless - you have put your trust into some sort of commodity that has some sort of value to someone...

    Do keep in mind that the US currency is stamped with 'In God We Trust' ... so ...

  9. #9

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    This guy has some arguments against it...

    https://www.scmp.com/week-asia/opini...ra-doomed-fail

    traineeinvestor likes this.

  10. #10

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    I don't think Libra will succeed - countries will regulate it to death. And most people won't trust Facebook with loose change, let alone letting them see a lot of our personal financial transactions.

    nivantj, shri and traineeinvestor like this.

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