The New Libra Coin – An Unofficial Explainer

I’ve been looking at the design of the new Libra coin (LBR) in the updated Libra Whitepaper. Here’s what I think the differences are between this new “synthetic” coin and the previous iteration of the coin as described in 2019. Hope it’s helpful!

Note, this is just my attempt to explain it with the information that is available. It is probably still subject to change. If you’ve found it useful, feel free to share!

Ray Dalio on What Coronavirus Means for the Global Economy

Ray Dalio is one of the best economic thinkers alive. On 9 April 2020, TED interviewed him about what coronavirus means for the global economy. Here is my summary. Any errors, omissions, misunderstandings are mine.

Ray Dalio on What coronavirus means for the global economy

Interviewer: Corey Hajim (TED)
Interviewee: Ray Dalio, Founder of Bridgewater Associates
Released 9 April 2020

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Three currency wars, not one

This short blog post describes three different types of currency wars that seem to be happening at the moment.

The phrase “currency wars” is not new – typically is has referred to deliberate devaluation of one’s own currency to increase competitiveness of exports.  If your currency is worth less, then your goods are cheaper to foreigners, so they buy more of them, which is generally good for your country.

Yet with increased discussion and relevance of fintech, wallets, central bank digital currencies, Libra, bitcoin, etc, it seems to me that there is more going on.  I’ve identified three distinct wars (battles? fronts?) being fought:

  1. Currency devaluation to increase competitiveness
  2. Offshore e-money supremacy
  3. Public money vs private money
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KYC in Stablecoins

Summary: Issuers of today’s fiat-backed stablecoins (such as PAX, USDC and TUSD) need to identify (or KYC) only those users who convert between bank account money and stablecoin, not all holders.

Some people might be surprised that intermediate users of stablecoin may transact without needing to being identified by the issuers. Yet few people know that there are kill-switches built in that can hinder bad actors. This arrangement can be described as permissioned pseudonymity. Stablecoin issuers have permission by their regulators to have pseudonymous users in their network.

Permissioned pseudonymity is positive for innovation while the industry explores the most productive uses for stablecoins.

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Colin G Platt On Peer-to-Peer

Last week I went out with for a beer and pizza with Colin G Platt of Blockchain Insider fame after we did a podcast interview about my book The Basics of Bitcoins and Blockchains at the 11FS office in Devonshire Square in London. Quite appropriately we settled down at the The Bell, a pub in east London and sometime home of the Ethereum London meetups, and talked about how peer-to-peer cryptocurrency payments are.

Here’s a summary of our conversation. Obviously it is heavily edited and we’re not as witty or eloquent as this in real life (well I’m not anyway).

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What is Blockchain?

Yesterday I did an recording where the interviewer asked me a simple question – what is blockchain? This got me thinking – I had no go-to answer for this. People use this word to cover a wide range of networks and platforms, and some platforms such as R3’s Corda (Note: I work at R3) are categorised as “blockchain” platforms, when they don’t even bundle transactions into blocks!

The best description I could come up with was:

Blockchain is a word used to describe a bundle of technologies that allow digital assets to be created and passed from party to party with guarantees that the assets are authentic and haven’t been copied or counterfeited all without needing to trust a third party to open and maintain accounts for customers.

To break this down a bit:

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Banking When the Bank is Shut – Token Maximalism

In this post I describe why freeing financial assets from the books of custodians and returning control of them to their owners as tokens could create significant benefits to an economy. This brings together concepts from traditional finance, cryptocurrencies, and enterprise blockchains.

Opening+hours+of+banks
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The Basics of Bitcoins and Blockchains

Last December I was approached by a publisher, Mango, who asked me if I would write a book about blockchain technology.  A little nervously, I agreed, and I’m excited to announce the result of six months of effort:

The basics of bitcoins and blockchains - book cover

The Basics of Bitcoins and Blockchains is an essential guide for anyone who needs to learn about cryptocurrencies, ICOs, and business blockchains.  Written in plain English, it provides a balanced and hype-free grounding in the essential concepts behind the revolutionary technology.

I wrote The Basics for an audience of business people, students, practitioners, and those who are simply interested in this technology.  I tried to make it entertaining even for those who are already working in the cryptocurrency or blockchain industry.  For example, did you know:

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