• Report: Libra Members Consider Quitting Project Due to Gov’t Pressure

    At least three of Facebook’s early backers for its planned Libra stablecoin launch are considering withdrawing their support in light of the fierce regulatory pushback.

    Aug 23, 2019
  • Africa Could Emerge As the Battleground Between Facebook and China As Digital Currency Race Heats up

    However, Libra, if and when it launches, may not be the only venture to take a crack at Africa. In fact, another country may soon have its sights on the continent: China.

    Aug 22, 2019
  • Facebook Warns Investors That Libra Digital Currency May Never See the Light of Day

    Facebook reminded investors in its latest quarterly report that while it expects to launch its Libra digital currency in 2020, a number of factors could keep that from happening.In the risk factors section of the report, Facebook said it recognizes the significance of the pushback that’s come from lawmakers and regulators since the project was announced in June.“Libra has drawn significant scrutiny from governments and regulators in multiple jurisdictions and we expect that scrutiny to continue,” Facebook said in its filing with the Securities and Exchange Commission.In addition, market acceptance of such currency is subject to significant uncertainty. As such, there can be no assurance that Libra or our associated products and services will be made available in a timely manner, or at all. We do not have significant prior experience with digital currency or blockchain technology, which may adversely affect our ability to successfully develop and market these products and services.David Marcus, who is spearheading the development of Libra and the Calibra digital wallet project at Facebook, has said the currency will be “a more efficient, low-cost and secure alternative” payment tool for people…

    Jul 30, 2019
  • Huawei CEO: Why Wait for Facebook? China Can Issue Its Own ‘Libra’

    The CEO of Chinese tech giant Huawei thinks that China can compete with Facebook for market share by issuing its own digital currency.Huawei CEO: ‘Why wait for others to issue it?’As national news outlet Sina reported quoting a press conference in Italy on July 18, Ren Zhengfei believes China can easily create a digital currency with the same value proposition as Facebook’s Libra.“China can also issue such a currency by itself. Why wait for others to issue it? The power of a country is always stronger than an Internet company,” he said responding to a question from Italian economics journalist, Fabio Savelli.The comments follow concerns from China’s central bank, the People’s Bank of China (PBoC), that Libra could pose a threat to the country’s economy in some respects. Beijing developing its own digital currencyAs Cointelegraph reported, earlier this month, the PBoC’s director, Wang Xin, said that if Libra is mostly pegged to the U.S. dollar, China would be at a disadvantage.“If so, it would bring a series of economic, financial and even international political consequences,” he claimed.Beijing is reportedly in the process of developing a digital currency of its…

    Jul 26, 2019
  • 49% of US and UK Would Not Trust Facebook’s Libra

    Not many people understand the complexities of cryptocurrency and an alarming number of people don’t trust Facebook; it seems combining the two is not a well-received idea.New research from messaging app Viber has suggested 49% of consumers in the UK and US would not trust the social media giant when it comes to cryptocurrency. Facebook might want to get a foothold in this embryonic segment of the technology industry, however if consumers have lost trust in the firm, you have to wonder whether this will kill the potential of cryptocurrency through association.There are two interesting areas concerning Facebook’s drive towards cryptocurrency. Firstly, many people will start asking what cryptocurrency actually is and what it does. And secondly, when talking about money, many will start to question whether Facebook should be considered a trusted partner with its track record.Starting with the definition of cryptocurrency, we will not pretend to be an expert on the segment and few in the general public will have a concrete grasp either. This lack of understanding creates uneasiness and a lack of trust, while the fact…

    Jul 23, 2019
  • Facebook Libra Risks to Financial Stability Demand ‘Highest’ Regulatory Standards, Says G7

    The G7 group of nations has warned that cryptocurrencies such as Facebook’s Libra are a threat to global financial stability.A task force set up by the G7 to examine the issues said that rules of the “highest” standards are needed to minimize the use of digital currencies in money laundering and funding terrorism, Reuters reportsThursday.Following a meeting of finance chiefs from the G7 in Chantilly, France, this week, the group also said it would address tax issues raised by the digital economy, as per a draft summary of the meeting obtained by Reuters.As expected, Facbook’s Libra and its perceived risks to the monetary control of regulators was high on the agenda at the meeting, although some benefits were also observed.Benoit Coeure, European Central Bank (ECB) board member and head of the G7 task force, told the G7:“A global stablecoin for retail purposes could provide for faster and cheaper remittances, spur competition for payments and thus lower costs, and support greater financial inclusion.”Yet, he went on to say that such cryptocurrencies raise “serious risks” to policy priorities, such as anti-money laundering, financing of terrorism, consumer and…

    Jul 19, 2019
  • Lawmakers Amp Up Pressure on Facebook to Halt Libra Cryptocurrency Development

    U.S. lawmakers repeatedly pressed Facebook’s top blockchain executive to halt development of the Libra cryptocurrency during a contentious hearing on the project Wednesday.They didn’t get far.David Marcus, the CEO of Facebook’s subsidiary Calibra, reiterated his promise that Libra would not launch until regulators’ concerns were fully addressed. But he stopped short of committing to freezing technical work on the project, much to the chagrin of House Financial Services Committee members.The committee’s chairwoman, Rep. Maxine Waters (D-Calif.), had previously called for a moratorium, and it was one of the first things she brought up in the hearing, asking the Facebook executive:“Will you stop dancing around this question and commit here in this committee … to a moratorium until Congress enacts an appropriate legal framework to ensure that Libra and Calibra do what you claim it will do?”Marcus responded with roughly the same talking point he’s been using for weeks.“I agree with you that this needs to be analyzed and understood before it can be launched … and this is my commitment to you. We will take the time to get this right,” he said.Rep….

    Jul 18, 2019
  • Highlights From Facebook’s Libra Senate Hearing

    Facebook  will only build its own Calibra cryptocurrency wallet into Messenger and WhatsApp, and will refuse to embed competing wallets, the head of Calibra David Marcus told the Senate Banking Committee today. While some, like Senator Brown, blustered that “Facebook is dangerous!” others surfaced poignant questions about Libra’s risks.Calibra will be interoperable, so users can send money back and forth with other wallets, and Marcus committed to data portability so users can switch entirely to a competitor. But solely embedding Facebook’s own wallet into its leading messaging apps could give the company a sizable advantage over banks, PayPal, Coinbase or any other potential wallet developer.Other highlights from the “Examining Facebook’s Proposed Digital Currency and Data Privacy Considerations” hearing included Marcus saying:The U.S. should “absolutely” lead the world in rule-making for cryptocurrenciesThe Libra Association chose to be headquartered in Switzerland “not to evade any responsibilities of oversight” but since it’s where international financial groups like the Bank for International Settlements, though Calibra will be regulated by the U.S. Department of the Treasury’s Financial Crimes Enforcement Network“Yes,” Libra will comply with all U.S. regulations and not…

    Jul 16, 2019
  • Bitcoin’s Price Could Rise If Facebook’s Crypto Survives Congress Hearings

    Bitcoin has come under pressure ahead of the U.S. governmental hearings on Facebook’s Libra cryptocurrency on July 16 and 17.The price of a single bitcoin, which stood near $13,000 five days ago, fell below $10,000 earlier today and tested the 50-day moving average at $9,900 for the first time since February 18.Facebook’s head of Calibra – one of the entities set up to govern and develop the crypto project – David Marcus is scheduled testify to lawmakers on the Senate Banking Committee on Tuesday and the House Financial Services Committee on Wednesday.The upcoming scrutiny of Libra may be weighing over bitcoin. After all, past data shows BTC tends to drop ahead of congressional hearings related to cryptocurrencies and rise on favorable outcomes.Last year, for instance, BTC fell from $6,820 to $6,070 in five days to July 12, before rallying to $7,400 on July 18 when the House Committee on Financial Services gathered for a hearing on “crypto as a new form of money”.More importantly, the cryptocurrency remained bid in the following days and rose to a high of $8,500 on July 24 (according to…

    Jul 16, 2019
  • How 10 Countries Respond to Facebook’s Libra Cryptocurrency

    A growing number of governments have responded to Facebook’s cryptocurrency plans including China, France, India, Japan, South Korea, Russia, Singapore, Thailand, the U.K., and the U.S. Several intergovernmental organizations have also weighed in such as the European Central Bank and the Bank of International Settlements.Facebook’s Libra ProjectFacebook unveiled its plans last month for newly formed subsidiary Calibra which aims to provide financial services via the Libra network. “The first product Calibra will introduce is a digital wallet for Libra, a new global currency powered by blockchain technology. The wallet will be available in Messenger, Whatsapp and as a standalone app — and we expect to launch in 2020,” the social media giant announced. Calibra has been providing information to central banks worldwide regarding its Libra plans to create understanding and exchange information, according to Calibra CEO David Marcus.Regarding which countries Calibra will be available in, a Facebook spokesperson told news.Bitcoin.com on July 9 that “Calibra won’t be available in U.S.-sanctioned countries or countries that ban cryptocurrencies,” elaborating:The Libra blockchain will be global. It will be up to custodial wallet providers to determine…

    Jul 12, 2019
  • PBoC Official: Facebook Libra Threat Could Spur Work on China’s National Digital Currency

    With Facebook’s Libra cryptocurrency potentially posing a threat to traditional money on various fronts, China’s central bank could hasten development of its own digital cash, according to a People’s Bank of China (PBoC) official.Speaking at an event at Peking University’s Institute of Digital Finance earlier on Monday, Wang Xin, head of the research bureau at the PBoC, said if Libra becomes widely used for international payments and effectively acts like money, “would it … accordingly have a large influence on monetary policy, financial stability and the international monetary system?”As reported by the South China Morning Post, this risk means that the PBoC is looking at the situation with “high attention,” and could ramp up development of its own digital currency, which has been ongoing for some years.“We had an early start … but lots of work is needed to consolidate our lead,” Wang said.Facebook’s Libra project was revealed in mid-June to be planned as a stablecoin linked to a basket of fiat currencies and government bonds.Wang indicated China needed to know precisely which currencies those would be, and whether the U.S. dollar would play a role, according to the Post.If…

    Jul 9, 2019
  • Why Facebook Got Into Cryptocurrency and the Issues Which Lie Ahead

    When I first heard about Libra, I had mixed emotions. While Facebook’s opaqueness and shady business practices are indefensible, it’s hard to deny the value that it could bring to the space by introducing cryptocurrency to its billions of users. But would these users even humor using Libra?Aside from its declining image and usage, Facebook must also contend with government legal scrutiny and user adoption if Libra is to succeed in its vision of a nigh fee-less peer-to-peer digital currency. Failure to execute on any one of these could see Libra as just another failed project aimed to boost Facebook’s image (remember Internet.org?).In determining the efficacy of an endeavor, it helps to consider the intentions underlying it. So, before diving into the issues which we see Libra facing, let’s recap what may have led Facebook to be the first of the FAANG companies to dive in with its own cryptocurrency.Cambridge AnalyticaIn 2015, political consulting firm Cambridge Analytica breached Facebook’s terms of service by collecting the personal data of approximately 87 million Facebook users without their consent. This data was collected via an exploit in…

    Jul 8, 2019
  • Are Facebook, Fed And FOMO Responsible for Bitcoin’s $13,600 Bull Run?

    The cryptocurrency investing pioneer, Bitwise, has etched its name with the crypto elites owning to its numerous partnerships and detailed reports on global trading volumes and related scams. In the July monthly letter to investors, Bitwise presented its narrative on the ecosystem’s explosive growth in the month of June.Citing Bitcoin’s rising trading value and Bitwise’s 23% increase in total returns, the official letter read,“The “three F’s”—Facebook, the Fed (Federal Reserve) and FOMO (Fear Of Missing Out)—defined the cryptoasset market in June, sparking rising prices, significant volatility and a rekindling of the animal spirits that defined the crypto market in 2017.”While the cryptoverse is well-versed with Facebook’s short-lived entry into the crypto space, Bitwise attributed Bitcoin’s bull run to the U.S. Federal Reserve’s decision to lower interest rates down to 2.1%. According to the company, the resultant concerns related to ‘store of value’ assets acted as the catalyst for Bitcoin’s $13,600 peak.Against the backdrop of rising BTC prices and fiat’s falling interest rates, Bitwise claimed that,“Retail enthusiasm piled on to rising prices and traders looking at technicals jumped in to see if new levels could be…

    Jul 5, 2019
  • Social Media Outage Highlights Why Facebook Libra Cryptocurrency Puts Personal Privacy At Risk

    A massive outage on Facebook and Instagram revealed hidden “tags” given to users photos on the popular social media platforms – tags that are used by the company to market to its users. It also may have revealed how their Libra cryptocurrency will become a Trojan Horse into user data.It’s to no surprise that Facebook aggregates user data and likely knows more about an individual than anyone would truly be comfortable with, but the recent issue highlights how Facebook would use transactional data of Libra usage – the company’s upcoming fiat-based cryptocurrency project – to invade the privacy of their users and market to them with chilling accuracy.Social Media Outage Sheds Light on Facebook Privacy InvasionYesterday, a widespread outage impacting social media powerhouses Facebook and Instagram plagued internet users. And while much of the chatter online was more from users complaining that they couldn’t view photos of other people’s food, weddings, or their friend’s summer travel collage, the issue shed some light into how even the most innocent data is used by the corporation to market to its users.The company uses artificial intelligence to…

    Jul 5, 2019
  • Now Japanese Regulators Are Getting Anxious About Facebook’s Cryptocurrency

    Japan’s central bank has joined the regulators worldwide expressing concerns over the potential risks posed by Facebook’s Libra cryptocurrency project.A report from Nikkei Asian Review on Wednesday indicates that the Bank of Japan (BoJ) has concerns that Libra – a planned cryptocurrency backed by a basket of fiat currencies and government securities – will be tough to regulate and could bring risk to the financial system.Nikkei cited as unnamed official from the BoJ as recently saying:“It will move money into an absolutely virtual world, so it is completely different than other forms of digital payment.”The report suggests that by linking Libra to more than one national currency, Facebook may be trying to avoid undue control from any single nation’s regulators.The Bank of Japan’s governor, Haruhiko Kuroda, has said he intends to “keep careful watch” on whether cryptocurrencies could become generally adopted as a means of payment, and how existing financial and payment systems might be affected.The report further posits that, as Libra users withdraw money to buy the token from regional banks, Facebook would likely place those reserve funds in Japan’s larger banks, resulting in…

    Jul 4, 2019
  • Co-creator of Libra Explained Some Questions and Misunderstandings of Libra

    David Marcus, co-creator of Libra,explained some questions and misunderstandings of Libra over the past two weeks.The following content is from David Marcus.It’s been two weeks since we introduced Libra, a new cryptocurrency powered by blockchain technology. We shared a white paper, a number of deep-dive papers on important topics, a testnet, and additional material. Since then, we’ve seen a lot of great dialogue from many different viewpoints. It’s been encouraging how receptive so many people have been to the Libra vision and approach. As expected there are also some questions and a few misunderstandings. So I wanted to take the time to provide answers and add clarity. We’ll keep doing this along the way to keep everyone informed and up to date. Before I do so, I wanted to remind everyone that Facebook, through its subsidiary Calibra, is just one of the initial 28 Founding Members that are coming together to form the Libra Association. It’s easy to assume from the headlines that Libra is only associated with Facebook, but that is not the case.We made the deliberate decision to…

    Jul 4, 2019

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