politics

Japan sets up working group on impact of Facebook's Libra

18 Comments
By Leika Kihara

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18 Comments
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Given the recent digital thefts of cryptocurrency here, I would be surprised if anyone is stupid enough to use Libra.

9 ( +10 / -1 )

Libra sounds like a trojan horse to get people used to cryptocurrencies and to help pave the way towards a cashless society. Libra is not stabilised by commodities but its value will be defined by a basket of fiat currencies including the dollar, euro, Swiss franc and the yen (SDR?). It is backed by companies like Visa, Mastercard, Paypal which are linked to big banks.

At least Bitcoin is limited in the number of coins that can be created. Not so with not Libra.

https://techcrunch.com/2019/06/18/facebook-libra/

The plan by the social media giant to build a digital currency has raised concerns among global regulators that it could quickly become systemic given Facebook's huge cross-border reach.

Maybe that's the plan!?!

4 ( +4 / -0 )

Given that Facebook can't protect user data, why would anyone expect the security and privacy required for financial transactions?

Only a fool would allow this company to handle their financial affairs.

13 ( +13 / -0 )

Maybe that's the plan!?!

To "quickly become systemic", that is. I don't really see global regulators doing much since they're often part of the same corrupt system. But if it looks like there are 'concerns' and checks and balances then the public can sit back and leave it in their capable hands.

2 ( +2 / -0 )

“Highly volatile and based on thin air” as opposed to the current fiat currency which is highly volatile and based on a politicians promise?

Libra isn’t what crypto currency is all about, as an offering it is worse than fiat currency but what is scaring the pants off government and the elite is that true cryptocurrency is outside their control and through it so are you and your finances.

6 ( +6 / -0 )

Facebook has shown they'll be sneaky as hell at getting data. I've had FB offer me friends that I have no connection with in real life, other than their number in my phone, even though I never gave FB permission to access my contacts.

Libra will just allow Facebook and other companies to track our data and money usage. They're creating an environment where people willingly give up their commodity for free - their data. Their usage habits. Their spending habits. Their buying habits.

People complain about how Facebook as not respected their privacy. Well if people weren't opening up their whole life to Facebook, Facebook wouldn't be able to violate their privacy. People willingly gave up that commodity without realizing, and Facebook has made billions and billions off of it.

Which is why I won't use this Libra. It's the Faustian bargain. You get to use their coin and all its benefits, and they get to make billions more off knowing your spending habits.

At least Bitcoin is limited in the number of coins that can be created. Not so with not Libra.

I'm not sure which of those is better to be honest.

8 ( +9 / -1 )

Facebook has shown they'll be sneaky as hell at getting data.... People complain about how Facebook as not respected their privacy.

Exactly, data is the new gold. And the data thieves are just as cunning, if not more so than they were for gold. I never felt like I was missing out on anything by not having a FB account.

7 ( +7 / -0 )

Facebook...who here thinks that they can be trusted to mind your hard earned $?

If I wrote a list, they would be right at the very bottom.

6 ( +6 / -0 )

Given that Facebook can't protect user data

If you're that concerned then don't sign up for Facebook. Most of it is just a photo op for the Democrats to rail against the system and grab votes. Use a freaking ad blocker like UOrigin and delete your tracking cookies using CCleaner. It's just that simple.

Only a fool would allow this company to handle their financial affairs.

Then simply opt out of Libra. It's backed by major credit companies so check your freaking statements like you should normally be doing anyway. It's really just that simple.

People suffer from extreme paranoia.

-6 ( +0 / -6 )

Trust Zuck the Crook with my hard-earned money? Uh, I think I'll pass on that one...

3 ( +3 / -0 )

This smells soooo fishhhiiiii !!!!

Be careful, this will he the next big bubble and many people could lost millions on this virtual scam..

Who could be so fool to trust your finances in a silly social network??????....

2 ( +2 / -0 )

Is fb a country now? Only countries have currencies. As a citizen of your country you can change your monetary polices. You have depositors insurance. Too centralized and your tools diminish, like Greece and the Euro no longer making sense.

-1 ( +0 / -1 )

Each transaction takes up too much electricity and is not environmental. Block chain is a canard. You can burn all the coal in the world too doesn't mean you should. The last hurrah of a world currency when that is the domain of a country

1 ( +1 / -0 )

It is essential to understand the structure of the consortium libra that will govern and manage Libra coin and payment system.

The ultimate aim of Libra and currency wallet Calibra is to create a industry wide authentication system coupled with a decentralized and portable digital identity......

Let not be coy here, Facebook has 2 billion users worldwide. Think about the implication. Blockchain node membership and on-chain voting rights is critical to govern decisions about Libra

What structure govern the entity that will eventually have control of protocol to be turned over to a new organization, the Libra Association?

The Libra Blockchain - Libra Developers – White Paper

https://developers.libra.org/docs/assets/papers/the-libra-blockchain.pdf

May I suggest scroll to page 7 - 3 Executing Transactions.........I have vested financial business interest in development of core components of blockchain.

1 ( +1 / -0 )

To comprehend the difference between Bitcoin and Libra/Calibra product wallet is paramount on understanding the difference between Bitcoin and Libra transactions and payment services.

Bitcoin relies upon computing energy to initiate transactions. It consumes copious of power and can take minutes to complete transactions with fees to match . Libra adopts a transaction methodology that moves within seconds with negligible fees.

1 ( +1 / -0 )

Is fb a country now? Only countries have currencies.

Had. Only countries had currencies. Originally, currencies weren't backed by nations, they were backed by entities (individuals, banks). Then nations took them over and they became fiat currencies. It remained that way for a long time because there wasn't any way for any other type of entity to create a currency. Then we got the internet, which unifies us as a species, and is not restricted by borders, and now there is a means for entities other than countries to create a viable currency. We can clearly see this with Bitcoin which has been around for a decade now (and is actually once again skyrocketing in price).

Each transaction takes up too much electricity and is not environmental.

Well, you're not entirely understanding it, as the electricity used is not on a per-transaction basis, it's on a per-block basis, which is an arbitrary number of transactions. But that's moot in that you are also talking about Bitcoin, and while Bitcoin is a cryptocurrency, it is the only cryptocurrency that is Bitcoin - meaning Libra is not Bitcoin. Bitcoin is open for anyone to jump in and become a miner. I could do it on this very computer I'm typing on now. But with the minute amount of power I have, it's very unlikely I'd win any race to write the next block to the chain, therefore receiving the reward of bitcoins, which is the motivation behind doing it in the first place.

Now, if I were to instead join a different closed network, with say 20 computers of the same power as mine, then my odds of winning the race are roughly 1/20. The amount of power required to run these 20 computers is like 1/billionth of what's running Bitcoin, but they are still a decentralized network, providing enough cross referencing to run a blockchain.

Summary: You cannot say cryptocurrencies are an abuse of electricity, only that Bitcoin is.

1 ( +1 / -0 )

Had. Only countries had currencies. Originally, currencies weren't backed by nations, they were backed by entities (individuals, banks). Then nations took them over and they became fiat currencies. It remained that way for a long time because there wasn't any way for any other type of entity to create a currency.

As I understand it currencies are not backed by nations or other entities, they are backed by gold, silver or some other physical commodity. They only become fiat currencies when the government removes that commodity like Nixon did in the '70s. So they then have no intrinsic value but continue to be used because of govt regulation. That's when the problems start because there's no limit to the amount of currency that can be issued, paper or digital. The average life of a fiat currency -- and there have been many of them -- is supposed to be around 27 years. So we're on borrowed time.

Add to that the fact that governments borrow "money" (created from a ledger) from privately owned central banks and then pay the principal back with interest, which was never created in the first place (usury), and you've got a disaster in the making. Why do governments borrow from a private entity when they can issue money interest free directly from their own treasuries? It shows where the real power lies. Once cash is fully digital manipulation will be much easier and people will not have full control over their money. This is one of the reasons for the push to digital currencies like Libra and other forms of cashless payments.

0 ( +0 / -0 )

As a citizen of your country you can change your monetary polices. You have depositors insurance.

I wouldn't put too much faith in depositors insurance. It might cover depositors when a bank or some other financial institution goes belly up. But relatively speaking, it's minuscule and nowhere near enough to cover people's losses if there is a large scale crash. Another reason for depositors insurance is so that people will continue to have confidence in fiat currency; ie "My money is safe. It's guaranteed by the government".

1 ( +1 / -0 )

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