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by la_barba 2554 days ago
>Conceptually this is a bank, but with no interest returned to users, no financial oversight from governments, controlled by Silicon Valley's top companies.

How so? I don't think they have access to your digital wallet, unlike a bank.
1 comments
driverdan 2554 days ago
It's funded by you depositing fiat currency with them, like a bank. They earn interest on your deposits, like a bank.
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la_barba 2554 days ago
You convert your fiat currency into crypto currency. Once the exchange is done, you have no rights to the fiat currency. This is in no way similar to a bank. The bank can use your deposited money, whereas here the currency is always in your digital wallet, and only you can initiate a transaction in and out of it. Do you have any information that contradicts this? I've only skimmed the whitepaper.
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lalaland1125 2554 days ago
> Once the exchange is done, you have no rights to the fiat currency.

This is incorrect. Facebook's tokens given users the right to exchange their tokens back for the backing assets.

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la_barba 2553 days ago
>Facebook's tokens given users the right to exchange their tokens back for the backing assets.

Well, yeah, of course you can convert the tokens back, similar to how you can exchange between currencies, but it would also depend on the exchange rate. You would not necessarily get back the same amount you put in.

"It is important to highlight that this means one Libra will not always be able to convert into the same amount of a given local currency (i.e., Libra is not a “peg” to a single currency). Rather, as the value of the underlying assets moves, the value of one Libra in any local currency may fluctuate. "

https://libra.org/en-US/white-paper/#the-libra-currency-and-...

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lalaland1125 2550 days ago
Sure, you won't get back the same USD, but you will always get back the same amount of the underlying assets as you put it. This is the the same situation you would be in if you had a bank account denominated in euros.

Alternatively, you can look at this like an exchange traded fund. In both cases what you are buying are tokens which represent shares of other assets.

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