{"id":53397,"date":"2019-10-24T19:00:14","date_gmt":"2019-10-24T13:30:14","guid":{"rendered":"https:\/\/blogadmin.forumias.com\/?p=53397"},"modified":"2019-10-24T15:54:43","modified_gmt":"2019-10-24T10:24:43","slug":"7-pm-the-imf-should-take-over-libra-and-make-the-most-of-the-idea-24th-october-2019","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/7-pm-the-imf-should-take-over-libra-and-make-the-most-of-the-idea-24th-october-2019\/","title":{"rendered":"7 PM | The IMF should take over Libra and make the most of the idea | 24th October, 2019"},"content":{"rendered":"\n<p><strong>Context:\n<\/strong>Facebook\u2019s\ncryptocurrency Libra.<\/p>\n\n\n\n<p><strong>More\nin news:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Social media giant Facebook had planned to\nlaunch a new digital currency, called Libra,&nbsp;in 2020.<\/li><li>Visa, Mastercard, PayPal, Stripe, Mercado\nPago and eBay have abandoned the Facebook-led corporate alliance underpinning\nLibra. Thus, the Libra Association is fragmenting.<\/li><li>Mark Zuckerberg appeared before the House Committee on\nFinancial Services on 23 October to discuss Libra and its planned roll-out.<\/li><\/ul>\n\n\n\n<p><strong>Libra:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Libra is a simple global currency and financial infrastructure that empowers billions of people.\u00a0<\/li><li>Libra is made up of three parts that will work together to create a more inclusive financial system:<ul><li>It is built on a secure, scalable, and\u00a0reliable blockchain;<\/li><li>It is\u00a0backed by a reserve\u00a0of assets designed to give it intrinsic value;<\/li><li>It is\u00a0governed by the independent Libra Association\u00a0tasked with evolving the ecosystem.<\/li><\/ul><\/li><li>The Libra currency is built on the \u201cLibra Blockchain.\u201d Because it is intended to address a global audience, the software that implements the Libra Blockchain is open source.<\/li><li>Unlike the majority of cryptocurrencies, Libra is fully backed by a reserve of real assets. <\/li><li>A basket of bank deposits and short-term government securities will be held in the Libra Reserve for every Libra that is created, building trust in its intrinsic value. <\/li><li>The Libra Reserve will be administered with the objective of preserving the value of Libra over time.\u00a0<\/li><li>The Libra Association is an independent, not-for-profit membership organization headquartered in Geneva, Switzerland. <\/li><li>The association\u2019s purpose is to coordinate and provide a framework for governance for the network and reserve and lead social impact grant-making in support of financial inclusion.<\/li><\/ul>\n\n\n\n<p><strong>How\nLibra can be a game-changer?<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>As Business Insider\u00a0reported\u00a0back in August 2017, 2 billion people around the globe don\u2019t have a bank account. Here are some more statistics about the unbanked population:<ul><li>More than 20% of unbanked adults receive wages or government transfers in cash, and many people in developing countries pay bills and school fees in cash.<\/li><li>Women make up just over half (55%) of unbanked people worldwide.<\/li><li>SE Asia alone has 438 million unbanked people, which is 73% of the entire population. According to a study done by McKinsey, reaching to the unbanked population in this region could increase its economic contribution from $17 billion to $52 billion by 2030.<\/li><li>India, which is the target market for Libra, has about 190 million unbanked people, the second largest in the world after China.<\/li><\/ul><\/li><li>The advent of the internet and mobile broadband has empowered billions of people globally to have access to the world\u2019s knowledge and information, high-fidelity communications, and a wide range of lower-cost, more convenient services. These services are now accessible using a $40 smartphone from almost anywhere in the world.<\/li><li>Libra is a global, digitally native, reserve-backed cryptocurrency built on the foundation of blockchain technology. The vision of Libra is that people will be able to send, receive, spend, and secure their money, enabling a more inclusive global financial system.<\/li><\/ul>\n\n\n\n<p>C<strong>oncerns about Libra: <\/strong>Facebook\u2019s Libra,\na global cryptocurrency, poses three main challenges:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>The\ngovernance of the currency:<\/strong>&nbsp;Libra is privately generated and\ngoverned.&nbsp;Private governance of money implying unaccountability, enclosure\nof reams of financial data, and the socialisation of its risk leading to a\npublic bailout possibility.<\/li><li><strong>The\ncontrol over financial data:<\/strong> Commentators and governments\nhave&nbsp;raised issues&nbsp;related to the dangers of combining financial data\nwith behavioral data. There is no indication that this data will be open for\nuse by anyone outside the Libra Association, although the Libra blockchain\nitself will be open for anyone to build products on top of.<\/li><li><strong>The\nfinancial risk associated:<\/strong> Many have&nbsp;pointed out&nbsp;that if\nthere is a run on a widely-adopted private currency- that is, if Libra loses\npublic confidence and people start selling it all at once, the currency will\nneed bailing out using public funds. This would be yet another instance of the\nprocess of&nbsp;socializing capitalist risk.<\/li><\/ul>\n\n\n\n<p><strong>International\nMonetary Fund (IMF):<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>The International Monetary Fund (IMF) is\nan organization of 189 countries, working to foster global monetary\ncooperation, secure financial stability, facilitate international trade,\npromote high employment and sustainable economic growth, and reduce poverty\naround the world.<\/li><li>In 1944, representatives of 44 nations met\nin Bretton Woods, New Hampshire, to draw up a plan for the post-World War II\neconomic order. Their goal was to avoid a repetition of the destructive\npolicies that could spark another conflict. So they created the IMF to promote\ninternational monetary cooperation. Ever since, the IMF has played a vital role\nin maintaining global economic stability and ensuring broadly shared\nprosperity.<\/li><li>Thereby, created in 1945, the IMF is\ngoverned by and accountable to the 189 countries that make up its near-global\nmembership.<\/li><li>The IMF&#8217;s&nbsp;primary purpose&nbsp;is to\nensure the stability of the international monetary system, the system of\nexchange rates and international payments that enables countries (and their\ncitizens) to transact with each other. The Fund&#8217;s mandate was updated in 2012\nto include all macroeconomic and financial sector issues that bear on global\nstability.<\/li><\/ul>\n\n\n\n<p><strong>Way\nForward:<\/strong><\/p>\n\n\n\n<p>Libra is very\ninnovative, useful and visionary concept. For the reason of being monopolistic\nin the hands of Facebook, the technology should not be just thrown away. &nbsp;The core concept of Libra can be handed over\nto the IMF so that it can be used to reduce global trade imbalances and\nrebalance financial flows. Indeed, a Libra-like cryptocurrency could help the\nIMF fulfil its original purpose.<\/p>\n\n\n\n<p><strong>Source:\n<\/strong><a href=\"https:\/\/www.livemint.com\/opinion\/online-views\/the-imf-should-take-over-libra-and-make-the-most-of-the-idea-11571854142243.html\">https:\/\/www.livemint.com\/opinion\/online-views\/the-imf-should-take-over-libra-and-make-the-most-of-the-idea-11571854142243.html<\/a><strong><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Context: Facebook\u2019s cryptocurrency Libra. More in news: Social media giant Facebook had planned to launch a new digital currency, called Libra,&nbsp;in 2020. Visa, Mastercard, PayPal, Stripe, Mercado Pago and eBay have abandoned the Facebook-led corporate alliance underpinning Libra. Thus, the Libra Association is fragmenting. Mark Zuckerberg appeared before the House Committee on Financial Services on&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/7-pm-the-imf-should-take-over-libra-and-make-the-most-of-the-idea-24th-october-2019\/\">Continue reading <span class=\"screen-reader-text\">7 PM | The IMF should take over Libra and make the most of the idea | 24th October, 2019<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":49370,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[130,9],"tags":[],"class_list":["post-53397","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-7-pm","category-public","entry"],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2019\/07\/7-PM.png?fit=1000%2C500&ssl=1","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/53397","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=53397"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/53397\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media\/49370"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=53397"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=53397"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=53397"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}