My 2 sats:
Everyone is conflating Facebook with the Libra consortium, saying "they'll never let Facebook do this". But Facebook specifically separated themselves out of it, they are only one of ~30 nodes, likely for popular opinion and fiscal flexibility as much as regulatory need.
Visa and MasterCard are both backing Libra with that $10m investment, so I'm sure All Of The Lawyers™ have looked at the business plan, and decided it was airtight, even knowing regulatory pressure would be put on it.
I personally don't give 2 dogecoins about what the current US president tweets, but obvious it will have some market impact. I think the main impact will be more visibility for those who know nothing about Bitcoin, as well as legitimizing cryptocurrency as a "real thing which can't be ignored" to those already familiar.
Furthermore, as much as I am a huge proponent of decentralized platforms, I have a feeling Libra is going to be the coin which ends up winning. Stablecoin removes volatility, which prevents "get rich quick" mentality as well as legit risk-averse investors. A consortium of (loosely decoupled) companies provides some of the benefits of distributed system / consensus protocol, while allowing enough regulatory oversight to be fast-tracked.
And finally, with Facebook's 2B+ users, and another 500M WhatsApp, you have immediate KYC, adoption, and even, well, government-level Total Information Awareness of how, when, and where people are spending money in real-time.
Heck, coupled with a US recession / inflation event, China cashing out bonds or re-pegging the Petroyuan, seriously devaluing the dollar (even just 10%), it might even start to replace "cash" and Venmo.
Seriously crazy shit.
President is smart, who is stupid enough to give centralized monopoly over money to Facebook? Extremely dangerous. Smarter thing is to join decentralized revolution and join one of the crypto projects that want to change world for the better.
He's not smart, nor a stable genius, just highly motivated by money. He's probably profited nicely from the action this tweet caused. And long term billionaire bankers have his back (or his balls) to ensure continued support for fiat. Mostly though he probably wants to squeeze Zuckerberg to get something in return. It won't be long before he is singing the praises of Libra, "the best ever crypto believe me!"
Nope. No way Facebook is getting a banking charter any time soon. It will take years and years for that and I am highly doubtful they will suceed. New money shouldn't be in Facebook hands, it is extremely dangerous to allow that.
Does any blockchain company have or need a banking charter? Not that I'm aware of, not even the ones that literally offer a USD pegged stable coin.
- Does PayPal have a banking charter? Also no.
- Do credit card companies have a banking charter? Also no (AFAIK)
- Does your stock broker need a banking license? Also no
Simple thing is if you're not offering banking services then you don't need one. Libra has no need to create fractional reserve currency like regular banks do. They aren't going to be lending money either. And they aren't accepting checks or transferring USD around. So I think the government is going to have a very hard time pressing the case that they do need a banking license.
Seems to me like the US government is making idle threats to do something new here and it'll be interesting to see how it plays out as more financial regulations seem about as popular as a snake at a lucky dip. Or at least they should be because you those so called small government anti regulation Republicans are always saying that's how they roll... LOL.