![]() ![]() It is the stable currency to which all things are compared. NO: The best thing for the global economy is the U.S. But it’s not without risks, including growth of an unregulated global shadow banking system and making small economies more vulnerable to economic downturns. Libra could provide similar benefits for many people outside Europe. A common currency benefited members of the European monetary union, making it easier to buy and sell across borders. YES: Libra would make it easier for many people in the world to make financial transactions and could provide new economic growth. An interesting issue will be how this affects monetary policy in individual countries. The concern about a concentration of economic power is legitimate, so there needs to be oversight. With big players in global finance such as Mastercard and Visa involved, their situation could be more stable than might be the case in some countries. YES: It could provide access to banking in countries where the financial infrastructure is weak and there is concern about the stability of the financial system. Gina Champion-Cain, American National Investments But for Libra to become widely adopted, concerns associated with trust, privacy and governance will have to be addressed. Along with a means to transact with merchants, Libra could become a low-cost way to transfer funds internationally and a stable store of value in countries with volatile currencies. Libra has the potential to make financial services more accessible to these individuals. YES: Many individuals, especially in developing countries, have limited or no access to banks. Backed by a basket of bank deposits and short-term government securities of various major currencies, wild price speculations may be contained. Largely overcapitalized by retail holders with massive, inflated balance sheets, it may be the largest coupon scheme ever devised (sort of sophisticated store voucher system). ![]() So long as accepted for financial transactions and national currencies, the impact could be immense. YES: With huge potential to disrupt financial systems, the idea marks overdue need for online commerce.
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