Libra Could Compete With Traditional Central Bank Currencies: Kroszner

The video discusses Bitcoin as an asset, comparing it to gold, and highlights its volatility, which limits its use as a currency. It introduces Libra, a stable coin by Facebook, aiming to be less volatile and more widely used. The video explores the regulatory challenges Libra faces, similar to those PayPal encountered, and its potential to disrupt traditional currencies due to its large user base and backing by a major company.

What is one of the main differences between Bitcoin and Libra?

• Libra is more volatile than Bitcoin.

• Bitcoin is widely accepted as a currency.

• Libra is pegged to a basket of currencies.

• Bitcoin is a stable coin.

Why might Libra become a more effective medium of exchange than Bitcoin?

• It is backed by a government.

• It is already a unit of account.

• It has a large user base through Facebook.

• It is more volatile than Bitcoin.

What is a significant challenge for Libra in becoming a unit of account?

• Expressing prices in Libra.

• Volatility issues.

• Regulatory approval.

• Lack of user interest.

What regulatory challenge did PayPal face that is similar to what Libra might encounter?

• Avoiding volatility.

• Gaining user trust.

• Becoming a stable coin.

• Creating a new currency.

How could Libra potentially disrupt traditional central bank currencies?

• By being more volatile.

• By having a large user base and stability.

• By being backed by gold.

• By being a government-issued currency.