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Libra VS XRP


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Imho, the Libra Assocation is nothing more than a global commercial bank.

Everyone who wants to buy/use Libra needs an account at the Libra Association in order to enable the link between their Libra amounts and the corresponding internal booking accounts (to pay out valid Libras in the corresponding local currencies). That means, one cannot simply buy Libra at an exchange or privately without such an account as it is possible that those Libra get reported as stolen by the sender afterwards. Therefore, the sender and receiver would need an App which is linked to their corresponding Libra accounts in order to legally transfer any Libra. This means that all transfers are fully transparent for the Libra Association - and have to be as they are liable for their accounts.

Another issue is that then they would need a banking licence for each country and corresponding currency reserves. So, where is the difference to any traditional global commercial bank?

Edited by tar
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2 minutes ago, tar said:

Imho, the Libra Assocation is nothing more than a global commercial bank.

Everyone who wants to buy/use Libra needs an account at the Libra Association in order to enable the link between their Libra amounts and the corresponding internal booking accounts (to pay out valid Libras in the corresponding local currencies). That means, one cannot simply buy Libra at an exchange or privately without such an account as it is possible that those Libra get reported as stolen by the sender afterwards.

At first probably. But once millions of Libra are made available they'll start circulating just like the other cryptos, or not?

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9 minutes ago, Wandering_Dog said:

 Did you assert earlier that only fixed quantity and fixed prices of a settlement asset together lead to liquidity crises? Or did I misread that? 

 

Arising problems of issueing a practicable useful currency (that holds its purchasing power over time) are per se unevitable.

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4 minutes ago, Dario_o said:

At first probably. But once millions of Libra are made available they'll start circulating just like the other cryptos, or not?

Not if you can report Libras as stolen. How should that work without a corresponding Libra Assocation account?

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6 hours ago, Dario_o said:

Here: https://www.finanzen100.de/finanznachrichten/boerse/facebook-schafft-neue-weltwaehrung-werden-wir-bald-alle-in-libra-zahlen_H745713121_10838637/

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So sind alle Einzahlungen, die Sie tätigen, von der Association gesichert. Stiehlt also etwa jemand Ihnen Libras, bekommen Sie das Geld von der Association ersetzt. Das bedeutet, dass der Verband alle Einzahlungen in herkömmlichen Währungen auf seinen Konten lagert.

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Quote

So all deposits you make are secured by the Association. If someone steals Libras from you, you will get the money replaced by the Association. This means that the Association stores all deposits in traditional currencies in its accounts.

But true, there is nothing regarding this in the white paper. Instead, there are only authorized buyers/sellers that make contracts with the Libra Association. So, it acts more like a central bank.

Edited by tar
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12 minutes ago, Viggo said:

As much as we all love XRP, Libra is going to pump like crazy when released in Q120. I will secure a hefty position 

Um, Er, is that sarcasm?   If so you really should use the /s afterwards so we are not in doubt..

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