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Facebook: Meet "Libra" and "Calibra" - Now Diem and Novi ...

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  1. #1

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    Facebook: Meet "Libra" and "Calibra" - Now Diem and Novi ...

    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

    It’s called Calibra, and it’s 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 Facebook’s 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 Facebook’s next big thing.

    Calibra’s 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

    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.


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    “Almost zero cost” roflmao. I don’t 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 that’s a problem you’ll have twice going in and out of crypto.

    If Libra grows big (I guess it will) it’ll 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.

  5. #5

    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.


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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 ...

  7. #7

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    Well aware of that. And it is utterly irrelevant to the benefit you cited. The only thing that crypto can automate / make cheaper is the transaction. Which is right now already in the 100 HKD range - how much of an advantage would you get? Meanwhile, the need to transfer fiat into crypto and back will be massively more costly than just moving HKD to AUD or such. No expat asking about cheaper exchange rates on geoexpat will find those in crypto. Unless they're naive enough to try QuadrigaCX 2.0 or such....
    traineeinvestor likes this.

  8. #8
    Do keep in mind that the US currency is stamped with 'In God We Trust' ... so ...
    European 10 year government bonds with negative yields - or the 100 year Austrian bond with 1.2% yield. Our financial system is out of wack - but Libra will not fix that as it is a 'stable coin' based on a basket of fiat currencies.

    There are few people I trust less than Zuck - but something like libra could still be a great benefit.
    No reason it would be expensive to fund your libra account.

    Biggest obstacle is the central banks - they don't want something that hinders them from setting interest rates, or issuing bonds to fund their operations.

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    Quote Originally Posted by shri:
    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.
    I suspect in a while Business Users will have to load up their account with Libra credits to pay for services in Libras. This will create a pool of Libra's with the treasury function treating it like a currency driving some sales denominated in Libras to reduce FX costs and act as a natural hedge.

  10. #10

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    This will create a pool of Libra's with the treasury function treating it like a currency driving some sales denominated in Libras to reduce FX costs and act as a natural hedge.
    If their tax departments and lawyers allow it.

    No one "has to" do anything.
    traineeinvestor likes this.

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