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Comment by throwawaylolx | Hacker News Reader

>payment networks like Visa/Mastercard/Paypal should be most worried by this

I don't think they're worried seeing that they're some of the biggest investors in the project https://www.wsj.com/articles/facebooks-new-cryptocurrency-ge...

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I’d be concerned if dealing with Zuckerberg.

If it fails they lose lots of money, if it succeeds FB has huge leverage over them which it didn’t have before. Can’t really see an upside for these companies to this.

The point is that its "trustless", they don't have to trust zuckerberg, they can see the code themselves and where the payments fee's break way to, he isn't the only one running nodes from what I understand, I believe the partners are as well, which I imagine is the only way they agreed to this.

We'll see, I suspect FB will retain sufficient control for it to require trusting FB.

If it fails, they lose their investment, which I believe was only on the order of double-digit millions, which is nothing to Visa. If it succeeds with their investment, they have a tiny amount of leverage. If it succeeds without their investment, they have no leverage at all.

A $10MM investment as a hedge against that outcome makes a lot of business sense, from a risk mitigation standpoint. The size of the investment is also indicative of their relative confidence that it will succeed - if they were sure that it would succeed and supplant their core business, they'd probably be investing a lot more.

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