Let's say something like Libra gets adopted worldwide. Let's say there's a huge financial crash at some point in the future, with lots of currencies, including some in the Libra basket (the stuff pegging it to the real world), going off the rails.
What would Libra's powers-that-be do then? They can tweak the parameters of their system any way they like. They could throw any currency out of the basket. Or do whatever they like.
Throwing a failed currency out of a currency basket is like the proverbial tree falling in the proverbial forest. It would not change the value of the Libra at all. The value would already be gone as the value of each stablecoin is computed roughly by taking the entire value of the currency reserves, and dividing it by the number of coins. A good analogy is what happens to the value of a mutual fund when an underlying security becomes valueless.
You are positing a catastrophe of such magnitude that "well, the value of my Libra has gone to shit" is the least of your worries. More appropriate concerns in such a scenario include "How can I acquire enough BDSM gear to wear and skulls with which to adorn my car to survive in the forthcoming Mad Max apocalypse."
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A really fascinating scenario is this:
Let's say something like Libra gets adopted worldwide. Let's say there's a huge financial crash at some point in the future, with lots of currencies, including some in the Libra basket (the stuff pegging it to the real world), going off the rails.
What would Libra's powers-that-be do then? They can tweak the parameters of their system any way they like. They could throw any currency out of the basket. Or do whatever they like.
Throwing a failed currency out of a currency basket is like the proverbial tree falling in the proverbial forest. It would not change the value of the Libra at all. The value would already be gone as the value of each stablecoin is computed roughly by taking the entire value of the currency reserves, and dividing it by the number of coins. A good analogy is what happens to the value of a mutual fund when an underlying security becomes valueless.
Let's say all meatspace currencies in their basket go off the rails. What would Libra do?
You are positing a catastrophe of such magnitude that "well, the value of my Libra has gone to shit" is the least of your worries. More appropriate concerns in such a scenario include "How can I acquire enough BDSM gear to wear and skulls with which to adorn my car to survive in the forthcoming Mad Max apocalypse."