Essentially, the financial network would not allow digital payments out of anything suspected of being a Libra -> local currency exchange, and running any sort of exchange would likely be verboten.
In the end, it doesn't really do much but slow things down for some users or add extra steps to the process of extracting value out of Libra as long as somewhere is willing to run a quasi-legal exchange. There is also the option to threaten Facebook/Libra with sanctions if accounts can be proven to have been made/facilitated for Citizens.
Another possibility is the requirement to maintain access to the blockchain for mining and analysis against other financial activity the respective governments have the capability to audit.
Hence is the danger of something like Libra combined with Nation State scale actors.
The common person on it may not see anything but addresses, but given enough out-of-band info, the potential for government use as surveillance (or any large organization really) is far too large.
In the end, it doesn't really do much but slow things down for some users or add extra steps to the process of extracting value out of Libra as long as somewhere is willing to run a quasi-legal exchange. There is also the option to threaten Facebook/Libra with sanctions if accounts can be proven to have been made/facilitated for Citizens.
Another possibility is the requirement to maintain access to the blockchain for mining and analysis against other financial activity the respective governments have the capability to audit.
Hence is the danger of something like Libra combined with Nation State scale actors.
The common person on it may not see anything but addresses, but given enough out-of-band info, the potential for government use as surveillance (or any large organization really) is far too large.