Yes - Facebook’s currency is Big Deal
Yes - Facebook’s currency is Big Deal
# ** Yes - Facebook Currency is Big Deal **
Eran Hildesheim 22 / 06 / 2019
** The digital currency, the "Libera", is expected to be launched in 2020. If Zuckerberg's plans go as planned, it will make you forget everything you knew about money and banking. The world is already afraid **
Last week, Facebook announced the start of a new era in cryptocurrencies. This is the launch of the Libra digital currency from the currency will be launched during 2020. The media was filled with articles on the subject but mostly ones that caused confusion among readers. So for all the confused who are asking what the hell is going on here, here is an explanation for you at eye level on Libra without mentioning the word blockchain once
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Let's start with what interests everyone first. Anyone who missed the Bitcoin train on the way to occupying a villa in Kfar Shmaryahu and is already fantasizing about storming the entire box office with the Libra in 1 - will forget about it. Tzuki and his friends realized that no Chafetz Chaim business would want to touch a currency like Bitcoin that one day is worth 2020 times its entire business, and the next day its value drops to the point where it will have no money to pay for electricity. Therefore, in order to make the Libra a stable currency, it will be linked to a basket of currencies (such as the dollar and the euro) and government bonds, which means that its value will be the average value of the most stable financial assets in the world. Whoever uses it will at any moment be able to convert it back to the shekel at more or less the value at which he bought it. The chance of earning from the pound will be like the chance of earning foreign currency today and even less so.
2. Although the media reports that it is a Facebook currency, it is not accurate. Facebook will have only one percent control over it. In total, the intention is for there to be 100 large companies in the world (Visa, MasterCard, eBay and PayPal, etc.) that will manage the currency under the Libra organization based in Geneva. Facebook will be just one of them. The role of those companies will be somewhat reminiscent of the role of the central bank. They will issue coins, take them out of circulation, manage the system, supervise it, and also provide all the computing power necessary for its existence. It is interesting to discover among the companies also the credit card companies that probably realized that if they did not jump on the bandwagon and lead it, the digital currencies would do to them exactly what the smartphones for Nokia and the digital photos for Kodak did.
3. So why is Facebook still identified with the currency? - because it is the one that will run the app (wallet) that will be installed on your phone or computer through which you will manage all your activities with the currency: conversion, transfer, storage - everything will be under the same app that may sit on one of Facebook platforms like WhatsApp. The same wallet will be called "Calibra". This means that Facebook will not only let you know what's going on in your private life, it will also go deep into your pocket. Facebook claims that it will keep all our details safe and will not use them, God forbid. A saying that is a bit believable like the "what the hell?" Netanyahu answered when asked if he would work to lift his immunity after the election.
An example of what caliber use might show:
4. In fact if there are no glitches and failures, by early 2020 we will have 2 huge banking systems with 2 currencies of their own: the innovative, fast, borderless and closely monitored government, and the shekel operating under a cumbersome system, with an outdated concept replete with onerous regulations. The first will benefit from a potential amount of potential merchants (Facebook users) of 3 times the total number of citizens in the United States, the European Union and Israel combined. The second will enjoy a law that requires us to pay tax only with its currency, which ensures the widespread use of the currency.
5. So why is it Big Deal? If Zuckerberg's wet dream comes true, Libra will be recognized for payment by most businesses. Because Libra's vision is that transferring money between a mother in Israel and her mother who is in the middle of a trek in the Himalayas will be as simple, fast and cheap as sending a watsap message and may even be done via watsap (without having to fax faxes to the bank, without waiting a few days for the money to pass, and no fees to the brokerage banks ), And because businesses can get Libra without paying psychic fees to the credit card companies, and because Libra doesn't have withdrawal fees, withdrawal fees, and any other fees that banks have invented, in such a situation more and more people may give up their bank deposits and transfer them to Facebook's caliber. A bank without deposits is kind of like a car without fuel. In such a situation, a bank that fights for its survival will have to pay us more interest on the money for it to deposit, but it will also charge more interest on the loans to make a profit. Increasing lending at such a sensitive time when the world is addicted to zero interest rates by itself could jeopardize the stability of banks and the economy. What's more, today, investment houses will be set up that will give us loans and interest rates on the Libra and compete with bank deposits. And we haven't even talked about a financial crisis situation where everyone will want to withdraw the money from the bank - with the Libra it can be done with the click of a button and at once transfer the money from the banks to Libra instead of queuing for ATMs. This is exactly the same doomsday scenario for the banking system from which the Bank of Israel warned in a report issued this year only in relation to the situation in which digital currency will be common and accepted in parallel with the shekel.
6. The world fears such a scenario. so what are we doing? The French economy minister has already warned against the currency and threatened that "it is out of the question for Libra to be recognized as an independent currency." Maxine Waters, chairwoman of the U.S. Financial Services Commission, has demanded that the project be frozen until government officials discuss it. Republicans and Democrats in Congress are calling for an emergency debate, arguing that this invention should not be advanced until lawmakers understand its implications. In the Kremlin, there are already voices that Russia will not allow the Libra to be traded and its use will be blocked, in China Facebook apps are blocked as well. Even the German parliament expressed concern that Facebook would become a shadow bank.
7…. So is it good or bad?
For the first time, countries may face a non-territorial currency, controlled by powerful non-governmental corporations, and widely used and recognized for payment worldwide. We have never faced such a situation where there is head-to-head competition between currencies, with one government on the one hand on the other corporations, so it is difficult to predict the consequences of such a move.
On the other hand when you think about it even today money is controlled by private corporations under the guise of democracy as if it were. After all, most of the money today is credit made by private banking corporations, which govern governments and regulation by a central bank most of the time engaged in maintaining their monopoly, by monstrous lobbyism that they engage with lawmakers and control of major media outlets, so it's not clear if Libra will do more harm than good In relation to the existing situation. Zuckberg's vision is that the currency-led Libra organization will open its doors after a period of public service (happy believers) - so we may for the first time declare that the money in our hands is the weight of the conquest of Jerusalem. Regardless of whether giants such as Apple, Microsoft Google or Amazon enter or compete with Libra or we are predicting a time when banks and governments will have to recalculate, the central bank may lose its relevance and we can sit on the couch and wish all parties well.
But until all of this happens, there will be many more chemicals in Yarkon and parliamentary laws. What is for sure - the mere announcement of the Libera has set foot in the door of the banking monopoly on money and promises that what was already probably no longer.
Yes - Facebook’s currency is Big Deal
The original responses to the post can be read at the bottom of the current post page on the site or in the link to a post on Facebook and of course you are invited to join the discussion
Excellent post
The response to the post was inspired by Roy Cesena's books that I read, or rather, eagerly heard his books in the car. recommended! I am happy to announce that I asked Roy to join the forum and he agreed so we certainly won and would love to hear his opinion on the subject.
I think that at least in the commissions sector most of the forum members will be very profitable from the Libra.
It also sounded like a pretty good solution between one end, where Block Chene wanted to be completely distributed. To the other end, where banks wanted to use blockchain to maintain control.
It is still frightening to think that corporations are actually the new controlling ones in the world, on the other hand, as the post says, one of the things that this coin expresses is their exit from the shadows.
Corporations have always been in control.
A really strong post.
Steven Shnerik Lior Gita
Excellent post, thank you
Stunning! Wonder what the implications will be for the real estate market.