Libra responds to my queries

Excellent to see such dialogue, very good responses, here is the relevant set of replies on Twitter.  Here were my original queries.

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Yes, let's begin importing EU tech regulation (mutatis mutandis) ASAP.

In America we create things. In Europe, they regulate things. Big difference.

Who these days regulates "creative destruction"?

Americans do not cease to demonstrate the capacity and talent for unregulated creative destruction, when not simply permitting things to die or when simply killing things outright (e. g., literacy and numeracy, at the hands of creative public educators, at the instigation of our cognitive elites).

In America, that is, nothing is created without something else being stifled, and much is stifled in America each and every day. (The stifling or outright abolition of public education, I grant you, would be wholly, fully, and completely "creative".)

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"The crypto angle will be key for competition, low barriers to entry and innovation, and because it complements strong local institutions to create global spillovers"

I don't understand this. I don't see that any of that follows. Crypo provides security and anonymity.

And this reads like nonsensical babble: "because it complements strong local institutions to create global spillovers"

the myth of anonymity is the caged bird of the 21st century. And since the only security online is diversification, there is bifurcation, there is such a thing as orange language, when ego eclipses instinct, so I implore you to consider the third phase as an empty region, like the porcupine that has been purloined of its fetters.

Can you explain what you mean by "orange language"?

permanent intoxication. the platonism bs needs to end.

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We have to synergize backward overflow!

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Here in Australia Libra is a popular brand of tampons.

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"The reserve will not be actively managed. Rebalancing of the basket may occur in response to major economic events. Such a change would require exceptional circumstances and a supermajority vote by the association’s council. 6/15"

"A key difference with a private company issuance is the desire to build a true public utility that is not controlled by any single entity."

Seems contradictory.

If they do not pay interest to the libra holders, what will they do about negative rates? Will Japan government debt be excluded from the basket?

Allowing payments using a passive ETF invested in all sovereign government debt seems like it might be simpler. As a country spirals into default, its weight in the ETF would drop as its market value declines but no trading is required to rebalance.

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Great solution. What was the problem it was supposed to solve?

Facebook's slowing growth, and it is an excellent distraction to Facebook's various privacy issues.

Which just might explain why Prof. Cowen, a man seemingly eager to dismiss the very idea that people own their data, received such a prompt reply.

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The problem solved is minimizing the money spent on salaries of tellers and call center employees while running a payment system/bank.

It's a great idea. People is already working on it, e.g. the demonetization of India. Monthly payment rate is about ~19 billion USD and growing 10% per month. One of the largest mobile wallet apps in India is Google Pay. They grew from 14 million monthly users on March 2018 to 45 million on March 2019. They expect to transfer $81 billion on payments this year. https://www.thehindubusinessline.com/money-and-banking/google-pay-transactions-hit-81-b-in-march/article26655388.ece

The most interesting part is this Jan 2, 2019 article on Whatsapp pay in India since Whatsapp is owned by Facebook, enjoy:

"The company (Whatsapp pay) has run into headwinds as it tries to extend the service nationwide, with regulators demanding that its payments data be processed in India, rather than on Facebook’s servers in California. Despite several meetings between Chris Daniels, WhatsApp’s chief executive, and India’s central bank governor since early 2018, the two are in a stalemate that has lasted all year."

https://www.ft.com/content/e045cdd2-0503-11e9-99df-6183d3002ee1

And, of course there's WeChat that offers mobile payments since a few years ago.

What happens when the two largest markets in the world (China and India) are protected by nationalistic authorities? It seems Facebook is late to the party and can think about growing in South America or Africa.

PS. not sure why launching another currency instead of working with the existing national currencies. It won't generate sympathy in many countries around the world.

But, in practice what will be the difference between this and the modern systems of electronic payment? 20-25 years ago this could have made a difference, but in the modern cashless society seems largely useless.

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The real targets of this "currency" are teenagers.

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Seems like the Jameson Lopp criticisms of Libra that TC linked to are valid and for this reason the hit in stock price of Western Union, which is most likely to be negatively impacted by the launch of Libra, is less than impressive, meaning the stock market at least doesn't think Libra will be such a great threat to traditional money movers nor will it be that scalable. Time will tell. I hope Libra is a success, as I hate being shafted by Western Union every time I send $20 overseas for a small payment (they take like 30% or more of that).

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