Blockchain

EICHENGREEN SAYS FACEBOOK’S LIBRA IS DOOMED TO FAIL

Published

6 years ago

July 13, 2020

Facebook’s much vaunted Libra stablecoin project seems to have gone quiet lately, and according to one economic historian, will “never see the light of day.”

Blockchain developers ignorant of economics and history?

UC Berkeley professor, economic historian, and former IMF policy adviser, Barry Eichengreen, has said that Libra will likely encounter too many “insoluble” problems and roadblocks from national governments to ever properly launch.

Speaking at the Unitize conference on 10 July, Eichengreen argued that, despite those behind stablecoin projects being experts in blockchain technology, they were mostly ignorant of monetary economics and history.

Summing up the situation, he said:

“Stablecoins are either fragile — they are prone to attack and collapse if they are only partially backed or collateralized with actual dollars or dollar bank balances, or they are prohibitively expensive to scale-up if they are, in fact, fully or over-collateralized.”

Additionally, he pointed to the problem of a stablecoin like Libra undermining national monetary policies – something especially problematic in countries with unstable fiat currencies, where citizens may switch to the stablecoin en mass.

Libra’s capital buffer was also called into question, with Eichengreen pointing out that, in order to encourage adoption, Libra would need to keep transaction fees low – resulting in a possible shortfall in terms of backing.

Libra would need central bank backing to succeed

Furthermore, he also warned that the potential proliferation of derivatives relating to Libra would result in it essentially needing a central bank. This, he argued, would be an issue because “national governments are going to be queasy about the creation of a private, Facebook-owned and operated central bank.”

So, unless Libra could come to some arrangement with existing central banks, like the Federal Reserve, which is highly unlikely given the currency political hostility to Libra, the stablecoin could be very vulnerable.

Indeed, as Eichengreen has previously warned, the emergency protections included in Libra’s revised white paper are very similar to the clearinghouse certificates intended to prevent bank runs in the years before the creation of the Federal Reserve in 1913.

These clearinghouse certificates were loan certificates, issued by a network of private clearinghouses, intended to provide an alternative means of payment if confidence in notes issued by a single bank collapsed. But, unfortunately, this led to some dollars being perceived as inferior to others.

All of these issues, he concluded, would be “insoluble” and mean Libra will never get anywhere.

AYO.NEWS says:

While we totally agree with Eichengreen that there are numerous issues surrounding Libra, there are also a few points to note.

Firstly, whether or not you see a stablecoin undermining national monetary policy as a bad thing very much depends on your views of national governments and their monetary policies. Would it be a bad thing to undermine the monetary policies of, say, Venezuela or Zimbabwe? And, are the current monetary policies of even the most “stable” developed nations, especially the United States, really sustainable anyway?

Secondly, is a Facebook/Libra Consortium-owned “national bank” really any different to what we have now? After all, The United States Federal Reserve System is privately owned, despite its name, as was the Bank of England until 1946. Do people really trust Facebook or the members of the Libra Association any less than they trust the government and banks?

Basically, Eichengreen is entirely correct, if you view the protection of the current system as paramount. However, as we can see very clearly in the world today, increasing numbers of people think the current system needs to be ripped apart and replaced.

‘AYO.NEWS says’ features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited or its affiliates or associates.

All original content featured on this site is © Pentagon Digital Limited, 2020

Blockchain

VCOIN LAUNCHES DEBIT CARD WITH UPHOLD: IMVU USERS EARN IN-GAME & SPEND IN REAL LIFE

VCOIN has teamed up with Uphold on a debit card that lets IMVU users spend currency earned in-game on real-world purchases.

Published

5 years ago

June 29, 2021

AYO News Staff

Vcoin launches debit card with uphold: imvu users earn in-game & spend in real life

VCOIN, the transferable digital currency used in the social metaverse app IMVU, has launched a debit card in partnership with digital money platform Uphold, allowing users to take value earned inside the virtual world and spend it in real life.

IMVU users can now withdraw VCOIN to an Uphold account and spend it using the Uphold debit card, earning 2% cashback on every purchase, both online and in store.

How the card works

The card is available first to US residents, with international availability to follow. Digital-only cards are free to order and use through the Uphold Card app, while a physical card carries a one-off fee of $9.95. Cashback on purchases is paid into the cardholder’s Uphold account.

From virtual economy to real wallet

VCOIN was first introduced inside IMVU, the friend-discovery and social metaverse app operated by Together Labs. IMVU runs one of the larger virtual economies of any social platform, with around 27 million transactions and 14 billion credits changing hands each month, according to the company.

The debit card closes the loop between that in-app economy and everyday spending. Creators and users who earn VCOIN by selling virtual goods or participating in the community can now convert those earnings into money they can use at ordinary merchants, rather than keeping the value locked inside the app.

A test case for the creator economy

The launch reflects a wider effort across gaming and virtual worlds to let users earn real income from in-game activity. It also highlights the regulatory hurdles involved: by routing withdrawals and spending through Uphold, an established and regulated money platform, VCOIN relies on a partner already set up to handle compliance, identity checks and card issuing.

How widely users adopt the card will be watched closely by other platforms considering whether to let virtual currencies flow out into the real economy.

Blockchain

ENGLISH PREMIER LEAGUE’S WOLVES ENTER ROCKET LEAGUE CHAMPIONSHIP SERIES

Published

6 years ago

November 5, 2020

AYO News Staff

English Premier League football club Wolverhampton Wanderers (Wolves) has entered the Rocket League Championship Series (RLCS).

Wolves already fields rosters in FIFA 21, FIFA Online 4, PUBG, Identity V, and Pop Kart Racing, and is the first Premier League club to enter the RLCS.

Discussing the news Wolves General Manager for Marketing and Commercial Growth, Russell Jones, said:

“Gaming and esports remain a crucial part of our brand growth strategy and signing such talented and ambitious players to represent our Rocket League esports team is another step forward in our journey to build stories outside of football and widen the appeal of the Wolves brand across the world.

“We have spent the last six months scouting teams and players and are delighted to welcome Rix, Luis and Ole, who will become Wolves Esports for the remainder of the current RLCS season X and beyond. We will be offering the team our full support as they compete in the winter split.

“I’d also like to thank the University of Wolverhampton who continue to be an exceptionally supportive partner of the Wolves Esports programme.”

While Team Captain of Wolves Esports Rocket League, Rix Ronday, added:

“It is a real honour to captain the first-ever Wolves Esports Rocket League team. I’m confident that we have recruited two of Rocket League’s most exciting talents in Ole and Luis and we are working hard behind the scenes to prepare for the RLCSX Winter Split kick-off.”

AYO.NEWS says:

Wolves have already demonstrated their enthusiasm for esports, using it to strengthen what is now a powerful global brand – for example, way back in February 2019, it became the first Premier League club to enter Chinese esports, through a partnership with Weibo eSports Club.

And, given the very real possibility of COVID-19 causing further disruption to football, diversifying the brand into multiple esports seems like a smart way to ensure fan engagement can continue, come what may.

‘AYO.NEWS says’ features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited or its affiliates or associates.

All original content featured on this site is © Pentagon Digital Limited, 2020.

Blockchain

FIFA 21 CHALLENGE IS MOST WATCHED EA ESPORTS EVENT YET

Published

6 years ago

November 4, 2020

AYO News Staff

The EA SPORTS™ FIFA 21 Challenge has smashed the viewership record, with an Average Minute Audience of over 250K.

A one-day esports tournament that paired top global professional footballers with the world’s best FIFA players, the EA SPORTS™ FIFA 21 Challenge drew an average minute audience (AMA) of 254,057 with a total watch time of 1,024,696 hours, making the event the most-watched EA operated esports broadcast in history.

In fact, the broadcast more than doubled the viewership metric set by the next most-watched EA operated FIFA event, the FIFA Global Series FUT Champions Cup: Barcelona, which took place over multiple days in January 2018 and registered an AMA of 92,678.

During the competition, four esports players paired with four professional footballers from international clubs Liverpool, West Ham United, Inter Milan, and Borussia Dortmund, clashed on October 29 for the EA SPORTS FIFA 21 Challenge.

Liverpool’s Trent Alexander-Arnold and Fnatic’s Tekkz took home the trophy and won $20,000 on behalf of their selected charities

In addition to incorporating celebrity participation to reach non-traditional gaming audiences, the EA SPORTS FIFA 21 Challenge was the first event to utilize FIFA Global Series Viewership Rewards, creating an interactive broadcast for viewers with in-game benefits for watching to further drive engagement and subsequent play time.

Reflecting on the event EA SPORTS FIFA Commissioner, Brent Koning, said:

“EA SPORTS FIFA is woven into the fabric of football culture. Bringing professional footballers and our esports pros together creates entertainment that sets our tournaments apart.

“The success of the FIFA 21 Challenge reinforces our strategy and vision for broadening the esports audience, creating content for our fans, and underscores the value of entertainment-driven events that branch outside of traditional esports.”

The FIFA 21 Challenge was a part of a series of EA SPORTS FIFA 21 Global Series pre-season invitationals, featuring notable influencers, footballers, and FIFA pros, in partnership with the interactive entertainment world’s biggest video streaming and content platforms.

It’s a nod to EA’s renewed competitive gaming strategy, which leverages the convergence of traditional sports, competitive gaming, and pop culture to create new, engaging, and accessible broadcasts for diverse audiences.

AYO.NEWS says:

Viewership figures like this illustrate just how integrated esports, especially FIFA, is becoming in mainstream football culture, and the growth looks set to continue, and reflects well on EA’s competitive gaming strategy. Last month, EA announced improvements and a bigger prize pool for the upcoming esports season.