Facebook has been given a lot of attention in the crypto spheres in recent months. Their current form of fame is attributed to the announcement that they were preparing to launch their own e-currency, called Libra. This was said to be launched in partnership with 27 other top financial, tech and service companies, including Vodafone, Uber, eBay, PayPal, and many more.
While the announcement initially brought a flurry of investment to the crypto sphere, with Bitcoin trades being one of the biggest benefactors, recent news has done just the opposite. Serious concerns levelled from a federal level have seen the Bitcoin price drop by 12% within hours.
While we expect resistance from governmental and political circles that punt centralised regulation on anything and everything that threatens their coffers, the concerns levelled here come with the very real threats that might delay Libra’s roll-out.
THE FACEBOOK DREAM
Facebook’s hope was made clear from the start, and unfortunately, it was ‘war talk’. They were hopeful that the networked collaboration could lead to a new world currency and set a foundation to an alternative financial system on the earth.
The stable nature of the coin detracted from true cryptocurrency and was hoped to carry sway in the centralized environment, putting to bed the concerns that people may have had about cryptocurrency. It seems, however, that Libra is facing stiffer competition from authorities, than anything Bitcoin ever mustered.
The latest concerns about the Libra platform have been levelled by the chair of the Federal Reserve of the USA, Jerome Powell. He has said that Libra has raised a host of serious concerns around regulation, regarding money laundering, consumer protection, and financial stability. He went on to say, “I just think it (Libra Project) cannot go forward without there being broad satisfactionwith the way the company has addressed money laundering and other issues.”
Though Mr Powell is the latest central banker to express caution on the subject of Libra, he is not the only concerned banker out there. Central bankers from Britain, Singapore, China, France, and the European Central Bank have all made their concerns known.
Facebook is set to hold a hearing with the Senate Banking Committee next week, as well as the House Financial Services Committee. We hope that for the sake of cryptocurrency, the brains in charge of the project have all the correct blocks ticked to calm the panic.
Already, certain Democrat Senate Banking Committee members have voiced their disapproval of the initiative, sending a letter to the Federal Reserve, requesting that the central bank protect the interests of the economy and consumers everywhere from what Sherrod Brown labels “Facebook’s Monopoly Money”.
HISTORY FUELS CONCERN
The Libra reservations are not unfounded though, as Facebook has given the world reason to worry about regulation and enforcement in the past. Facebook was recently under fire for failing to protect their user’s data and as a result, failed to safeguard their privacy. Furthermore, the social media platform was found guilty for being instrumental for the spread of disinformation and misinformation, globally.
Fortunately, Facebook does have a reputation for responding to authoritative queries. The trick to ensuring that all boxes are ticked in this venture would come from Facebook addressing each and every weak link pointed out by the government.
SHOULD THEY CALL IT OFF?
Despite receiving a letter from five top democrats on the Financial Services Committee requesting that the social media giant ceases with their plans for roll-out immediately, Facebook is convinced that it is the best possible time to implement such a platform.
Facebook spokesman, David Markus has tried to shrug off concerns stating that the social media company is not the controlling power in the network, but rather an equal share partner that forms part of the Swiss association controlling the currency.
Unfortunately, even some of the partners involved have shown a little hesitancy in the project. This only strengthens the resolve of regulation punters. Unfortunately, for Facebook, they are the only company getting flack for Libra, but we guess that their shoulders are broad enough to carry this burden alone anyway.
While we struggle to understand the reason why the negative attitude towards Libra has paid toll on all crypto trade values. While Bitcoin is distinctly different from the Stablecoin systems that Libra are set to use, the general public cannot separate e-currency, it seems.
Bitcoin still remains on a high though, having seen massive gains since January of this year. Investment, however, is not the only perk to the currency, anyway. Join us at VegasCasino to see how Bitcoin optimises your casino gambling experience. We are sold out to e-currency, as it truly does lay hold of the principles that will form the future.
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