[arawde]

I've only read the white paper, but finance is one of my biggest hobbies, so I'm going to take a stab at addressing the concerns you mention.

It's not entirely a currency peg - it's an asset peg. The assets will be Treasurys, bunds, etc. that are _representative_ of currencies, but are not direct currencies.

The peg is going to drift. The history of currency pegs is filled with struggles by institutions to maintain the peg at a fixed level, only to let go of the peg and convert to floating. I think the idea behind Libra is that, while the peg will drift, Libra will still be a drastically more stable store of value compared to almost every other crypto.

I would not be surprised to learn that the Libra Foundation's custodians are the people holding the assets and handling the counter-party risk. It explicitly says in the white paper that the interest earned on the reserves held by the custodians will be used to pay for expenses of maintaining the network. If I was Visa, I would be more than happy to hold a basket of bonds and take a cut in a play to try to expand my customer base, by moving more people into the transaction market space.

I understand why my answer wouldn't sit well - putting trust into thesee parties and buying into the ideas behind Libra require a huge leap of faith, one that I don't think I would even participate in. But I do think that the mechanics behind how Libra manages the peg are actually not as nefarious or difficult as you laid out.

[mr_toad]

> I think the idea behind Libra is that, while the peg will drift, Libra will still be a drastically more stable store of value compared to almost every other crypto.

There will be a temptation to speculate on it. And once started, speculation could easily get out of hand. If they want some semblance of stability they’re going to be prepared to actively engage in monetary operations, just like any other currency.