The Libra Central Bank as a Capped Delegated Proof of Stake
As recently noted by Weiss Ratings, setting up a functioning stablecoin is not as easy as the underlying idea. And if you really want it to be big, then you'll need the blessings of the established banking cartel.
I continue to maintain that the stablecoin to come will be based on the IMF's SDR (Special Drawing Rights) which is itself a basket of the leading global currencies. It is therefore no surprise to find that Facebook's Libra "will be backed by a collection of low-volatility assets, such as bank deposits and short-term government securities in currencies from stable and reputable central banks."
As their white paper also stresses, a stable coin is not a peg so it will fluctuate compared to local fiat currencies. So if you live in a developing nation with a rising currency, holding Libra may not be such a "stable" investment. However, Libra's claimed target are the estimated 1.7 billion people in the world who do not have access to any banking services.
Note that, like every good central bank, you the currency holder will not gain any interest, only the Founding Members who can afford $10 million per vote to be on the Libra Board can make some serious money.
Here is a strange clause that may actually sound familiar to Steem users: "Founding Members who hold Libra Investment Tokens and/or Libra at a value that entitles them voting power exceeding the above cap [of 1%] will make the excess votes available to the Libra Association Board for delegation."
So Libra is essentially a capped delegated proof of stake for its Tokens but not for the currency used by the masses. This is, of course, rather similar to other central bank structures.
Just to keep Facebook's megalomania in check, the Director of the Banque de France has hastily convened a G7 task force on stablecoins. He stated, keeping an impeccably straight face that private currencies "have never had a happy ending." He, of course, failed to mention that the Banque de France is an "independent" bank, meaning that it is owned by private banking families whose names require some digging. Most central banks are privately held cartels that keep their notional governments under supervision.
Welcome to another step in a globalist controlled future.
Does anyone still believe that future is Bitcoin?
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Well BTC was an innovation that laid the groundwork for currencies like Libra. It was predictable that the establishment would try and usurp BTC's role.
If Libra (or any coin) does not satisfy all the needs that the promise of a truly decentralized coin purported to satisfy, then another coin will come along, and another mainstream force will try and copy it.
This will go on until the people's needs are met. So I'm hopeful!
Where there's a need, the market will find a way!
But doesn't decentralisation mean two thing?
One is the nodes, the other is the decision-making. Institutions like DARPA like the decentralised node structure for security reasons, somewhat like the internet itself was built to withstand nuclear attack. But I don't think DARPA would consider that the US Military decentralise their control structure.
The capped DPOS looked interesting until that paragraph that Members could delegate their stake thereby opening up Libra to complete central bank control by sheer weight of money - as well as making the capping pointless.