Reply to post: Re: 1:1 inequivalence

You can trust us to run a digital currency – we're Facebook: Exec begs Europe not to ban Libra

DavCrav Silver badge

Re: 1:1 inequivalence

"Telling countries that your currency isn't a currency because it has a fixed exchange rate with existing currencies is ... not instantly persuasive."

They appear to be trying (badly) to say that because Libra is pegged they are not producing their own fiat currency.

Of course, this is garbage. Unless the basket of currencies is exactly equal to the proportions of each fiat that is being turned into Libra at any one moment, and is instantly hedged according to the currency that the person wants to change Libra into later, it cannot be 1:1.

Cross-border delayed transactions into an as-yet unknown currency cannot be 1:1. Facebook is (once again) lying.

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