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T800

Libra VS XRP

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Key whitepaper excerpt:

"Instead of backing Libra with gold, though, it will be backed by a collection of low-volatility assets, such as bank deposits and short-term government securities in currencies from stable and reputable central banks.

It is important to highlight that this means one Libra will not always be able to convert into the same amount of a given local currency (i.e., Libra is not a “peg” to a single currency). Rather, as the value of the underlying assets moves, the value of one Libra in any local currency may fluctuate. However, the reserve assets are being chosen to minimize volatility, so holders of Libra can trust the currency’s ability to preserve value over time. The assets in the Libra Reserve will be held by a geographically distributed network of custodians with investment-grade credit rating to provide both security and decentralization of the assets."

In essence, Libra is a money market fund wrapped in blockchain and hypothetically accessible globally.  Personally, I think that this is a brilliant move from Facebook both in a business sense and social responsibility manner.  Large portion of world's population remains unbanked, and those that do bank struggle with savings unless they have a fair amount of financial education and know where/how to save (invest) their money.  Libra seems like it addresses the problem of access to banking, but if it also manages to address inflation protection of underlying funds then Facebook could really be onto something.

If all of this works, then yes it could eat into Ripple's pie on the individual remittance front (displaced by FB-to-FB transfers), and yes it could be quite disruptive to the personal banking system.  And oh yeah - to that other "store of value" out there as well (cough, Bitcoin, cough).

On the other hand, money market funds are "funds" and not "money", meaning that they are only as valuable as the backing assets and/or money manager's ability to hold such assets in a manner that maintains fund's valuation.  Although the risk should in theory be low, chances of some catastrophic economic event (i.e. the crash of 2008) wiping out the backing assets and thus tanking the entire fund are nonetheless not zero.

That are many other things that come to mind, but this post is already way too long.  It'll be interesting to see how all of this plays out.

Edited by automatic
almost forgot BTC

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2 hours ago, T800 said:

You have no concerns that Lirba could do what Ripple are doing when it comes to sending payments from UK to India in seconds?  

Don’t worry bro 

1. Libra doesn’t offer on demand liquidity 

2. Ripple software is / can be integrated into erp systems , software systems etc and hence automating workflows 

3. Huge regulatory questions so far 

4. Only backed by 4 fiat  currencies . How to send money from Thailand to Mexico ? Not quite clear yet. Xrp (and other crypto’s ) can be exchanged into any currency 

5. basically a walled garden . Not everyone wants to use fb and certainly not some big companies like banks 

6. Xrp is not only targeted at remittances . Sbi has bigger plans ( trade finance etc ). 

7. I am pretty sure than libra  an freeze your funds , see what you do etc 

 

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It is a nine letter word ANTITRUST.   ButtBook and Zuchini Burger are a monopoly boys and girls.

Preventing collusion and cartels that act in restraint of trade is an essential task of antitrust law. It reflects the view that each business has a duty to act independently on the market, and so earn its profits solely by providing better priced and quality products than its competitors. The Sherman Act §1 prohibits "[e]very contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce." This targets two or more distinct enterprises acting together in a way that harms third parties. It does not capture the decisions of a single enterprise, or a single economic entity, even though the form of an entity may be two or more separate legal persons or companies. In Copperweld Corp. v. Independence Tube Corp. it was held an agreement between a parent company and a wholly owned subsidiary could not be subject to antitrust law, because the decision took place within a single economic entity.  This reflects the view that if the enterprise (as an economic entity) has not acquired a monopoly position, or has significant market power, then no harm is done.

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3 hours ago, T800 said:

You have no concerns that Lirba could do what Ripple are doing when it comes to sending payments from UK to India in seconds?  

as a perspective- i dont see nosto / vostro accounts being a thing of the past because of Calibra, I do see them being a thing of the past because of Ripple.

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1 minute ago, Kpuff said:

More like libra vs bitcoin. Both of them are going after the consumer market whereas Xrp is going after the enterprise market. Xrp right now has zero competition besides stellar and stellar isn’t doing well right now 

Nothing avoid enterprises to use Libra blockchain. 

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6 hours ago, T800 said:

 

What??? I think we read two different whitepapers. Libra blockchain is 90% ethereum permissioned network, Quorum for example, which is permissioned, uses virtual machine to execute transactions, balance based model, GAS to pay for usage, and uses BFT consensus. Similar thoughput btw. Just uses custom programming language which i am pretty sure is similar to Viper (evolution of solidity). Actually I thought there was very little innovation on Libra. 

Edited by AlvaroXRP

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I’m pretty sure we’ll see this gain some traction. Few people here are in a bubble thinking it won’t. Most the population WILL trade privacy for convenience. There might be a vocal few who won’t, but the massive numbers of users of Facebook, Alexa etc show otherwise.

Very interesting article on WeChat the other day on the BBC. It is completely unprivate to the extent China will block you for sharing photos of protests etc with your friends. To get back in you have to take a selfie and basically confess. And you’ve got no choice really, because if you don’t use it... you excluded from a lot of society. Imagine a kind of Facebook, Gumtree, WhatsApp, dating site all rolled into one.

It’s good news as far as I’m concerned anyway. General public only knows Crypto = Bitcoin = Criminals. Can’t under estimate how much awareness this brings to the space.

Secondly the more walled gardens the better, this is what XRP is born for. Besides if Facebook is getting involved in the money transfer business, they need a cash out strategy for these low volume currencies. More walled gardens the better!

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10 minutes ago, AlvaroXRP said:

Nothing avoid enterprises to use Libra blockchain. 

Ok while libra is taking its time to create this token which will be sometime in 2020. Ripple is already building liquidity for xrp right now. So guess who’s gonna have a head start before libra even exists, XRP. Besides from what I’m seeing it’s used in its own network like Facebook, Instagram and WhatsApp. So yeah it’s not gonna happen.

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Facebook’s cryptocurrency Libra decried by French finance minister, saying it ‘must not happen’

Quote

Facebook’s cryptocurrency Libra was only officially unveiled earlier today, but has already been the target of vociferous opposition from France’s finance minister Bruno Le Maire, according to a Bloomberg reporton Tuesday.

https://finance.yahoo.com/news/facebook-cryptocurrency-libra-decried-french-133433186.html

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33 minutes ago, T800 said:

Facebook’s cryptocurrency Libra decried by French finance minister, saying it ‘must not happen’

https://finance.yahoo.com/news/facebook-cryptocurrency-libra-decried-french-133433186.html

Given this thing has to be built and tests and then launched and then go through regulatory hoops before it is launched 2020 looks very optimistic?  Where will Ripple XRP be in 2 or 3 years time?

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