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Libra's Unresolved Puzzles
Libra's Unresolved Puzzles
Exactly what kind of money will Libra be? The white papers under-specify the core mechanism that is supposed to control the value and quantity of Libra. Is the Libra Reserve really like a currency board? Or is Libra meant to be like a mutual funds share, redeemable (by authorized resellers, not by the public directly) at the net asset value of a low-risk mutual fund diversified across several fiat currencies?
#Fintech#CryptoAssets#AltCoins#Stablecoins#Facebook#Libra#DFC
·alt-m.org·
Libra's Unresolved Puzzles
Libra, 2 weeks in | David Marcus
Libra, 2 weeks in | David Marcus
Facebook’s blockchain head, David Marcus, wrote a blog post trying to clear up some common questions about Libra. Among the points: Facebook won’t control the currency, and it’s meant primarily to help unbanked and underbanked people participate in the financial system. If Facebook benefits, it will be because people find it easier to transfer money using Facebook products.
#Fintech#CryptoAssets#AltCoins#Stablecoins#Facebook#Libra#DFC
·facebook.com·
Libra, 2 weeks in | David Marcus
Congressional Committee Calls For A "Moratorium" On Facebook's Libra Project
Congressional Committee Calls For A "Moratorium" On Facebook's Libra Project
The backlash against Facebook’s Libra project has begun. The House of Representatives’ Committee on Financial Services has written to Mark Zuckerberg, Sheryl Sandberg, and the chief executive of Calibra, David Marcus, asking for a moratorium on the development of both Libra Coin itself and Facebook’s bespoke wallet, Calibra.
#AltCoins#Stablecoins#Facebook#Fintech#CryptoAssets#Libra#DFC
·forbes.com·
Congressional Committee Calls For A "Moratorium" On Facebook's Libra Project
Why Facebook's Libra currency gets the thumbs down | Joseph Stiglitz
Why Facebook's Libra currency gets the thumbs down | Joseph Stiglitz
The real problem with our existing currencies and financial arrangements, which serve as a means of payment as well as a store of value, is the lack of competition among, and regulation of, the companies that control transactions. As a result, consumers – especially in the US – pay a multiple of what payments should cost, lining the pockets of Visa, Mastercard,
#Facebook#Stablecoins#Fintech#CryptoAssets#AltCoins#Libra#DFC
·theguardian.com·
Why Facebook's Libra currency gets the thumbs down | Joseph Stiglitz
Bitfinex Repays Tether $100 Million of $700 Million Loan
Bitfinex Repays Tether $100 Million of $700 Million Loan
Bitfinex borrowed as much as $700 million from the stablecoin issuer through a line of credit in early 2019. The exchange needed the cash to make up for an $850 million hole which resulted from its payment processor, Crypto Capital, having its funds seized by authorities in three separate nations. On Tuesday, the exchange said it had transferred $100 million from its account to Tether’s.
#Fintech#CryptoAssets#AltCoins#Stablecoins#Tether#Bitfinex#DFC
·coindesk.com·
Bitfinex Repays Tether $100 Million of $700 Million Loan
The Coming Libra Panics
The Coming Libra Panics
But if Facebook introduces seamless international transactions for the general public, runs will become commonplace. Inevitably, governments will have to step in to introduce a new form of friction to the system. One partial solution is a small universal financial transaction tax of the type proposed 50 years ago by the Nobel laureate economist James Tobin.
#CryptoAssets#Fintech#AltCoins#Stablecoins#CrossBorder#Facebook#Libra#DFC
·project-syndicate.org·
The Coming Libra Panics
Is Tether a factor in bitcoin's price surge?
Is Tether a factor in bitcoin's price surge?
Although crypto speculation surely increased after the social media giant’s announcement, bitcoin’s recent rise might also have something to do with another digital token, Tether, a US dollar-pegged unit commonly used to trade bitcoin on exchanges that lack banking partners. Tether is issued and redeemed by a company of the same name.
#Fintech#AltCoins#Tether#Stablecoins#CryptoAssets#DFC
·qz.com·
Is Tether a factor in bitcoin's price surge?
XRP, Libra and Visa to Fight It Out for Cross-Border Remittance Crown
XRP, Libra and Visa to Fight It Out for Cross-Border Remittance Crown
The increased penetration of cryptocurrency in the digital payment arena appears to be affecting the landscape of cross-border remittances. Financial institutions and other mainstream establishments are now jostling with blockchain startups for control over an industry that could possibly experience massive growth over the next few years.
#AltCoins#Facebook#Blockchain#Ripple#CryptoAssets#Fintech#Stablecoins#Libra#DFC
·cointelegraph.com·
XRP, Libra and Visa to Fight It Out for Cross-Border Remittance Crown
Market Design for a Blockchain-Based Financial System
Market Design for a Blockchain-Based Financial System
We develop a theory of long-run equilibrium in blockchain-based financial systems. Our theory elucidates the key market design features that separate proof of work and proof of stake approaches in the long run. Under proof of work, wasteful computation is used to secure the system, and users' utility in equilibrium is determined by the threat of a fork. Under proof of stake, by contrast, users' utility in equilibrium is generally above the fork threat level because custodians can use relational contracts to incentivize a higher quality of service. Relational contracts under proof of stake rely only on local institutions - but combining them with cryptography can create a platform for formal global contracts.
#Stablecoins#Facebook#Fintech#AltCoins#CryptoAssets#Libra#DFC
·papers.ssrn.com·
Market Design for a Blockchain-Based Financial System
Lawyers warn of Facebook’s Libra tax risks in Europe
Lawyers warn of Facebook’s Libra tax risks in Europe
Facebook’s proposed digital currency, Libra, will cause immediate tax problems for users in Europe that will hamper its mainstream adoption, according to leading tax lawyers. The tax problem stems from Facebook’s idea to peg the value of Libra to a basket of currencies globally rather than fix it in value against its users’ domestic currency.
#Fintech#Stablecoins#CryptoAssets#AltCoins#Facebook#Libra#DFC
·ft.com·
Lawyers warn of Facebook’s Libra tax risks in Europe
IMF Predicts Central Banks to Issue Digital Currencies
IMF Predicts Central Banks to Issue Digital Currencies
According to the IMF paper, several central banks in different countries are considering implementing some form of CBDC. Uruguay has reportedly launched a pilot program already, while the Bahamas, China, Eastern Caribbean Currency Union, Sweden and Ukraine are on the verge of testing their systems.
#Fintech#CryptoAssets#AltCoins#CBDC#DFC
·cointelegraph.com·
IMF Predicts Central Banks to Issue Digital Currencies
The Fed doesn’t like narrow banks, but asset managers do
The Fed doesn’t like narrow banks, but asset managers do
"Narrow banks would improve the competition in deposit markets, which would in turn would reduce the current subsidisation of incumbent banks, improve the transmission of monetary policy, raise deposit rates at other banks and reduce dispersion in money market rates,” McAndrews wrote in comments to the Fed.
#Fintech#CBDC#NarrowBanking#DFC
·risk.net·
The Fed doesn’t like narrow banks, but asset managers do
Bitcoin's Rise Shows Crypto Is Alive and Well
Bitcoin's Rise Shows Crypto Is Alive and Well
"Crypto is alive and well these days, even if you reject the utopian predictions that it will somehow displace money as we know it. If we have had a hard time seeing the resiliency of the crypto space, it is because we are not used to thinking of futures that are radically different from the present. But those futures — for monetary institutions at least — now seem to be closer than ever before."
#CryptoAssets#AltCoins#Stablecoins#Bitcoin#DFC
·bloomberg.com·
Bitcoin's Rise Shows Crypto Is Alive and Well
Why stablecoins like Libra are a silly idea
Why stablecoins like Libra are a silly idea
If the purpose of a stablecoin is to offer a new kind of payment instrument that uses fiat currency as the settlement asset, the question becomes, what added value, if any, such a product would bring to the everyday user. But Libra doesn’t even seem to have the intention of developing front-end solutions for everyday users. Instead, its core proposition is limited to becoming a new settlement asset, diluted by the fact that it will be patched together from other existing ones.
#Fintech#CryptoAssets#AltCoins#Stablecoins#Facebook#Libra#DFC
·linkedin.com·
Why stablecoins like Libra are a silly idea
Barry Eichengreen thinks Facebook’s venture into cryptocurrency is a terrible idea
Barry Eichengreen thinks Facebook’s venture into cryptocurrency is a terrible idea
Libra, unlike other stablecoins, is intended to complement national currencies rather than replace them. This doesn’t mean, however, that Facebook understands monetary economics any better than my 24-year-old [Silicon Valley] luncheon companions.
#Fintech#CryptoAssets#AltCoins#Stablecoins#Facebook#Libra#DFC
·washingtonpost.com·
Barry Eichengreen thinks Facebook’s venture into cryptocurrency is a terrible idea