You're free, in America, to settle transactions in whatever currency you please. When it comes to taxes or settling debt, U.S. dollars have primacy. But if you want to sell your house in Euros or Bitcoins or bags of glitter, that's always been permitted.
How can governments be in full control if there's a private partner/consortium/whatever that controls the technology? This seems akin to the whole "drive for Uber and be your own boss" argument.
They gain nothing while taking on a private partner, one that has an abhorrent history of privacy abuse. It’s so hard to see the benefit for anyone other than Facebook in this
So in your view, sacrificing people’s privacy by giving this sensitive data to Facebook and ceding the government’s distribution control for what amounts to minuscule savings is worth it? Just for scale, if you were operating a $100k budget, you’d be saving $10 while giving a private company immense control of the financial system.
How do you justify that?
But you wouldn't need to charge rates on the Libra system...you still implement monetary policy as before because Libra is just a currency backed by other currencies.
Given the currency shares announced though, it would potentially make monetary policy harder for non-US nations (i.e. EUR/GBP/JPY). My sense is that wouldn't be catastrophic but it would reinforce the position of the dollar/US monetary policy (as an example: if I am the ECB, I try to cut rates to zero then everyone just buys Libra until banks run out of money and force me to hike...this can work in reverse too where a big shock to the US economy can transmit through Libra globally...so functionally I think it would be very like a gold-exchange standard i.e. 1920-1970 but with USD as the exchange currency).
Btw, this is why you saw European nations come out so strongly against this. SDRs are basically the same thing but the IMF overvalued the EUR in the basket...this is why central banks don't really use SDRs. Libra is kind of the opposite where you have a realistic weighting of EUR which is obviously less good for the EUR (although, again, no-one uses SDRs and they haven't helped the EUR become less of a bad currency).
...but yeah...it definitely is complex because the needs of consumers/corporates for low-cost transactions runs counter to the needs of monetary policy. I can see why govts oppose this and the likely end point is some better solution to reduce transaction costs (which Libra essentially is...but trying to create a reserve currency was...not a good idea...ppl have been trying this for centuries).
Isn’t that already the case with EUR currency?
My understanding of the debt crisis in Greece is that it was partly due to the fact that Greece couldn’t print their way out of debt because only ECB can create EUR.