I would argue that Libra is competing directly with the US dollar.
It is a new form of currency for a user to obtain and use within the Libra ecosystem. I would imagine that the ideal world for Libra is for a user to onboard into the ecosystem and transact solely in that ecosystem. It would obviously require Libra to be ubiquitous for this to happen, but it may be the ultimate goal.
In this case, an American user would transact solely in Libra and not US dollar. I am not an economist, but I would imagine this is similar to Americans selling US dollars for foreign currencies, which I imagine weakens the dollar if done at a large enough scale.
Additionally, Libra is incorporated in Switzerland. I can only guess that this was done with foresight that the US might fight back against this new currency that competes against the dollar. With this incorporation location, it would be harder for the US to shut down this new monetary system.
Still this is very much hypothetical. I don't see the point is worry about it now when it's odds of success are completely unpredictable and so far it's got nothing but critique and scepticism from the early adopter crowd.
True. During the Libra hearing, one of the senators basically turned to his peers and said (paraphrasing) "Why are we worrying about this now? We have a million other issues of much greater importance to worry about."
