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Muh Technocracy

How FB is enabling digital sovereign currency and positioning itself for influence thereof.

From article in MIT Technology Review (thoth below):

A key piece of feedback from regulators was “the potential for a multi-currency Libra coin to interfere with monetary sovereignty,” according to the updated Libra white paper. So there’s a new strategy: The Libra Association, the nonprofit that Facebook has stood up to manage the currency, will issue multiple stablecoins denominated in single currencies. There will still be a Libra coin, but it will be a “digital composite of some of the single-currency stablecoins available on the Libra network.”

A stable coin for a single currency? How does that mitigate the potential for “Libra coin to interfere with monetary sovereignty”?

A digital composite of stable coins of single currencies is still….a stable coin of many currencies.

A welcome mat for central banks. The new approach will create a “clear path for seamlessly integrating central bank digital currencies (CBDCs) as they become available,” according to the new white paper. It adds that if a central bank were to develop a digital representation of one of the currencies already on the network, the Libra Association could simply replace the single-currency stablecoin with the CBDC.

“A clear path for seamlessly integrating central bank digital currencies” sounds like a partnership with central banks to launch digital currencies on the Facebook Libra platform. How can such a partnership not have the potential for “Libra coin to interfere with monetary sovereignty”?

moar: https://www.technologyreview.com/2020/04/16/1000047/facebook-libra-fiat-stablecoins