Response to an email; Facebook’s Libra is not anonymous and is nothing like the SDR

Libra sounds to me like a new version of the SDR. Pegged to a basket of  World top traded currencies. The original name Libra comes from the Roman Empire for a pound minting gold coins. Welcome to the future new Rome (Saturnalia).

The concept looks great if they can get the security and privacy stuff working flawlessly. 2.6 billion people with a new Swiss bank account. I didn’t know I could get a Swiss bank account with $ 100 dollars.  Lol

V – Canada

In astrology; according to Wikipedia, Libra is the only zodiac constellation in the sky represented by an inanimate object. The other eleven signs are represented either as an animal or mythological characters throughout history.

Libra is one of the three zodiac air signs, the others being Gemini and Aquarius. The sign of Libra is symbolized by the scales. The Moon was said to be in Libra when Rome was founded. Everything was balanced under this righteous sign. The Roman writer Manilius once said that Libra was the sign “in which the seasons are balanced”. Both the hours of the day and the hours of the night match each other. Thus why the Romans put so much trust in the “balanced sign”.

In weights and measures; according to Wiktionary, libra can refer to a Roman unit of weight equal to about 327 grams, any of various units of weight in Spanish- and Portuguese-speaking countries approximately equal to 460 grams, or as libbra, an Italian unit of weight.

With Facebook’s Libra, there is no anonymity. All transactions will be instantly verifiable and permanently recorded. Transactions can be reversed as well.

With respect to Libra’s anonymity, there is none. With regard to the blockchain underpinning Libra, there are important differences between Libra and bitcoin. The important differences of the Libra coin lie in its construction and characteristics. First and foremost, the blockchain is centralized and there are very few players who determine any changes. Thus it is a blockchain asset that is tightly controlled and can evolve over time. In addition, it is highly regulated and all of the transactions will be instantly verifiable and permanently recorded. This is a lot different than with other crypto assets, which can often be effectively transacted in anonymity.

How the Libra coin differs from the SDR

The differences between Libra and the SDR are fundamental and basic.

First, the Special Drawing Right (SDR) isn’t regarded as a currency or a claim against the IMF assets. Instead, it is a prospective claim against the freely usable currencies that belong to the IMF member states and comprise the SDR. In contrast, the Libra coin may be regarded as a currency, since it is a claim on the coin itself, not the nation-states. Perhaps we can think of it in terms of how a  money market fund operates. In a money market fund, the claim is not against the underlying assets, but against the fund itself. I can think of the Libra in some similar fashion. The claim is not against the underlying currencies and the Securities that make up the Libra portfolio, rather it is against the Libra.

Second, the SDR was never designed to be a transaction-based “currency.” Rather it was meant to be a national reserve alternative and designed to assist the nation-states with balance of payments issues and such. It also helped national governments to obtain financing. The average person or business would never buy or sell in SDRs. It was never designed to be a replacement for transactions at the consumer and business level.