Peter Schiff Fires Back After Facebook Crypto Head Calls Bitcoin “Digital Gold”

Last week, speaking at the New York Times DealBook Conference, David Marcus, the head of Facebook’s cryptocurrency projects, called Bitcoin “digital gold,” while simultaneously arguing that the coin is not a good currency for transactions:

“I don’t think of Bitcoin as a currency. It’s actually not a great medium of exchange because of it’s volatility,” Marcus said. “I see it as digital gold.”

Many have made the comparison between Bitcoin and gold in the past, with those most bullish on the leading cryptocurrency hoping that it will eventually surpass gold’s $8 trillion market value. Currently, the total value of all Bitcoin is $160 billion, about 50-times less than gold.
Bitcoin: Digital Gold
Marcus said Bitcoin is like gold because you can hold on to it as an investment just as people do with actual gold, but that the fluctuations in value currently associated with Bitcoin make it a bad choice for people who need a reliable system to send remittances across borders.
Commentators on Twitter, such as financier Peter Schiff, were quick to chime in:
Peter Schiff says bitcoin is too volatile as a medium of exchange (source: Peter Schiff Twitter)
Schiff, an outspoken critic of Bitcoin, found fault in Marcus’ claim that Bitcoin is digital gold, saying it’s too volatile to be used like gold is as a medium of exchange.
This reply drew fire from a lot of other Twitter users, many of who perceive Schiff to be backward-looking and a “member of the old guard.”
Responses to Schiff’s Claims
Twitter user @MarketAlly reminded Schiff that not only was gold also volatile initially, but that its stability came under the direction of banks and governments, something that crypto enthusiasts hope will happen with digital coins through proper regulation:

You are wrong Schiff. The stability of Gold came from enough banks, goverments, etc holding it and then as derivatives were built around it. Bitcoin is like digital gold and as those vehicles continue to be built around it, it will do the same. Gold was volatile initially
— MarketAlly LLC (@MarketAlly) November 11, 2019

Others pointed out a fault in Schiff’s claim that gold can “actually be used as a medium of exchange,” asking, rhetorically, for him to provide am example of someone using gold to make a purchase at a brick-and-mortar store.
Volatility is a concern for cross border payments, one of the key markets Facebook is targeting with its Libra cryptocurrency and Calibra digital wallet. Unlike Bitcoin, in attempts to help it remain stable, Libra’s value will be tied to currencies like the U.S. dollar and the Euro.
Admittedly, Bitcoin does have a somewhat turbulent, albeit short, history. Just two weeks ago, it was set to drop from $7,000 levels but quickly spiked to $10,300 in the hours following a positive statement on blockchain by Chinese President Xi Jin Ping.
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China Central Bank Official Predicts Stiff Competition Among Banks Upon the Launch of Digital Yuan

A recent statement by Mu Changchun, the head of China’s Central Bank Digital Currency Research Institute claims that China’s digital currency will lead to strong competition among commercial banks. Institutions will compete to provide the best services using digital currencies.
Two-Tier Approach With Digital Yuan – Mu Changchun
China’s is the first of nations to roll out a digitized domestic currency and is being heavily scrutinized by regulators and finance moguls alike. Similar to Facebook’s controversial project Libra the Digital Currency Electronic Payment (DCEP) project will be powered partially by blockchain technology. Mu Changchun said that the People’s Bank of China will be adopting a two-tier approach with the project. The latter will be issuing the currency to the commercial banks. Subsequently, they will resend it to the general public. While the whole process takes its time and unfolds itself, the banks will continue to compete and offer the best of services.
“During the research period, and also the issuance period there will be a horse race approach,”
Mu said.
He further  said,
“The front runner will take the whole market – who is more efficient, who can provide a better service to the public – they can survive in the future.”
He also commented that while the Central bank was “technology-neutral”, the technology of the latter will be subsequently adopted by other parties. As a matter of fact, DCEP has been designed to substitute existing coins and paper money. This implies that currency holders will not receive any interest payments. Thus, there will be no inflation or any ill-effects on the monetary policy.
Rising Popularity of Stablecoins and Digital Currencies
Notwithstanding, regulatory uncertainty due to the influence of cryptocurrencies, a large part of the money is moving to digital currencies. Mu’s comment indeed seems to carry substantial weight. Recently, a draft text prepared by the Finnish EU presidency, ECB and other EU central banks seek to create a digital currency that would have a legal base, unlike Bitcoin and Libra. As more and more nations come and join hands to support the making of digital currencies, it will invariably lead to a paradigm shift in the functioning of banks who might even plan on rolling out their own digital currencies.
The document reads:
The ECB and other EU central banks could usefully explore the opportunities as well as challenges of issuing central bank digital currencies including by considering concrete steps to this effect.
Analyzing the published draft, it seems that while the EU at present is only delving it on as a possibility, there are chances that the plan sees daylight soon.
Does ECB’s Want TO Gain Autonomy Over Monetary Flow?
An ECB official reported that the project would enable customers to use e-cash and deposit it directly at the central bank, thus, drastically reducing the need for intermediaries. Well, such a move is bound to receive flack from other banks, as ECB may take over its counterparts by managing digital payments at low costs.
The opposition which will ensue makes the whole idea about “Digital Euro” a bit too ambitious and far-fetched. However, it is also likely that ECB addresses the loopholes and ultimately rolls out the Digital Euro. Interestingly, former ECB President Mario Draghi said that there was no need for digital currency.
Stablecoins and Cryptos In China Must Abide by China’s Foreign Exchange Rules
Mu further gave his two cents on the concerns rounding Libra. He said that if a country has capital management policies in place, the cryptocurrency will invariably act as a threat to the country’s currency sovereignty.
When questioned about the state of stablecoins and digital currencies in China, he said that if they are to prevail in China they will need to abide by all of China’s foreign exchange rules.
Will the Digital Yuan and Euro see daylight soon? Let us know, what you think in the comments below!
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Source: CoinGape

Facebook’s Crypto Effort Will Take Decades to Spread but Libra Will Be Worth It, Says Exec

An executive at Facebook has said that Libra will not spread in the same way that the company’s social network did. Kevin Weil believes that the social media giant’s foray into the crypto asset space will take decades to fully roll out.
Weil is also not perturbed by the intense regulatory scrutiny into the planned digital currency. He claims that Libra will be worth the hassle in the long run.
Will Facebook’s Crypto-Like Offering Will Take Decades Rather than Years?
According to a report in CNBC, Kevin Weil, the vice president of product at Facebook’s digital wallet unit Calibra, gave his thoughts about the planned “crypto” during the Web Summit technology conference held at the Altice Arena and Lisbon Exhibition & Congress Centre in Lisbon, Portugal, this week.

Facebook exec says libra cryptocurrency won't spread 'like a social network' https://t.co/HTOLZzfZLU
— CNBC International (@CNBCi) November 5, 2019

Weil told the conference’s audience:
“This is not going to be a thing that spreads like a social network. This is going to be the work not of years but of decades, and it’s worth making.”
Already, Libra’s planned launch date of June 2020, detailed earlier this year, has been brought into question. The project has grabbed the attention of global regulators who are uneasy about various aspects of the planned crypto-like currency.
Some have raised objections about the potential for Libra to be used as a means of terrorist financing. Others have argued that it represents a threat to the sovereignty of nation states. In a recent Congressional hearing attended by Facebook CEO Mark Zuckerberg, various members of the US legislative body attacked the proposal.
In fact, pressure from regulators is believed to be behind several key members of the original Libra Association withdrawing their support just hours prior to the conglomerate’s first meeting last month. Mastercard, Visa, and other big names have all decided against being involved in the project that has so far attracted little  but criticism from lawmakers around the world.
Despite the objections, Weil said he is still optimistic about the project’s future. He raised the fact that there are still 21 organisations comprising the Libra Association. He added that the “crypto” project had already come along way in the last 18 months and he was expecting the number of Libra Association members to continue to grow.
Like Zuckerberg during the Congressional hearing, Weil reiterated that the primary use case for Libra would be remittance payments. The executive believes that a system like Libra would allow those sending money overseas to make substantial savings over more traditional money transfer services. However, Weil, like Zuckerberg, did not really give a solid reasoning as to why there needed to be an entirely new digital currency to facilitate fast global payments.
Finally, Weil also acknowledged that some people might not like the idea of using a currency built by Facebook. After stating that it was “OK” for people to feel like that, he said:
“You don’t have to use a Facebook product ever to get the greater value of the accessibility and lower cost brought by the libra ecosystem.”
 
Related Reading: Bitcoin Price Leaning Overbought After Run to $9,500, Pullback Possible
Featured Image from Shutterstock.
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Libra Project Should Not Be Headed by Facebook, Says Co-Founder of Ethereum

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Libra Project Should Not Be Headed by Facebook, Says Co-Founder of Ethereum
Ethereum co-founder said that Libra should not be run by Facebook because the social media giant still hasn’t earned the people’s trust.
Libra Project Should Not Be Headed by Facebook, Says Co-Founder of Ethereum

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Source: CoinSpeaker

Libra’s greatest asset (Facebook) is its greatest liability: Ethereum Co-founder

Ethereum Co-founder Joe Lubin featured on a Fintech Beat’s latest podcast to discuss the details around the launch of Ethereum 2.0. During the podcast, the entrepreneur began by highlighting the change from proof of work to proof of stake for transaction confirmations, which intends to eliminate the use of specialized hardware. Touching upon the usability […]
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Source: AMB Crypto

Jack Dorsey Invests $10M in the Startup ICO Platform CoinList

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Jack Dorsey Invests $10M in the Startup ICO Platform CoinList
Jack Dorsey is expanding his cryptocurrency involvement by backing crypto initial coin offering (ICO) exchange platform called CoinList.
Jack Dorsey Invests $10M in the Startup ICO Platform CoinList

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Source: CoinSpeaker

Famous Chinese Politician Denounces Libra While Expressing Optimism About China’s Digital Yuan

Respected Chinese official, Vice Chairman of China Center For International Economic Exchanges Huang Qifan has revealed that China may be the first country to launch a digital currency while denouncing Facebook’s popular cryptocurrency, Libra. Qifan called Libra a “delusional project that will never succeed.”
Libra Is Delusional And Bound To Fail
Huang Qifan, the former mayor of Chongqing weighed in on the much controversial Facebook cryptocurrency while expressing total optimism that China may be the first nation to launch a digital currency, a policy which may eventually be nurtured by many other countries in the long run.
According to Qifan, Facebook Libra is delusional and will never see the light of day. He made this known on Monday while speaking at the Bund Summit, a financial conference in Shanghai.
“Some companies are trying to challenge sovereign currencies by issuing bitcoin and Libra – this is delusional to me,”
“If commercial companies can issue various currencies, this world will be in chaos. That is equivalent to returning to the primitive society. This is ridiculous, so I personally believe that Facebook’s Libra would never be a success.”

Qifan maintained that private organizations are trying to erode the rule of sovereignty by issuing decentralized blockchain-based currencies of which Libra and Bitcoin are typical examples. Qifan’s testimony about Libra joins the global oppression and antagonistic comments attracted by Libra ever since it was introduced mid-year. Apart from regulatory instances which have posed serious stumbling blocks ahead of its launching in 2020, many prominent members of the European Union, central banks and big financial institutions have all made a show of disagreeing with the innovation laid out to bank billions of unbanked citizens globally.
China May Be The First To Launch A National Digital Currency
In opposition to the potential sovereignty of Libra, China is among the countries hurrying to launch a digital currency in order to discourage the widespread of the much controversial Facebook Libra. According to Qifan,

“China’s central bank may be the first central bank in the world to issue digital currency”.

“For sovereign states, the best practice is to issue sovereign digital currencies through the government and the central bank, ” “The issuance of digital currency should be linked to sovereign credit, national GDP, fiscal revenue, and gold reserves.”

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Source: CoinGape

Here’s Why Ethereum Researcher Vlad Zamfir is Saying No to Facebook’s Libra

The vocal, zealous supporter and researcher at Ethereum Foundation, Vlad Zamfir is drawing a line. Taking to Twitter on Oct 23, the developer made it clear that he will not work with individuals or companies that are associated with Facebook’s Libra and those who support the Open Libra project.
Acknowledging that his decision could be consequential for his reputation, he says that the whole discussion around Libra and their veiled intention is political.
Confident, Vlad adds that there is no doubt that cryptocurrencies and blockchain solutions will be adopted in the longer term. His objection was how some blockchain projects as Libra will turn out to be, questioning their eventual legal and political realities.
“I am not going to work or associate with anyone who supports Facebook’s Libra project or “not facebook’s” OpenLibra project. I’m sorry about damage to my personal and/or professional relationships that this may cause, pls understand; this is political. Adoption is going to happen, no question about that. The question is what the protocols will be, and what will be their legal and political realities. “
Facebook’s Troubles
Facebook and a conglomerate of more than 25 billion-dollar companies want to build a stablecoin, Libra, that will be pegged against a basket of currencies including the USD and securities drawing the attention of regulators who are firmly against their idea. A brainchild of Facebook, the stablecoin will be global and the cartel’s headquarters based in Switzerland, not the US.
Given the backlash and discourse since the announcement, it is apparent that Facebook is not getting any love. There are regulatory headwinds regarding the composition of the Libra Association, their ambitious objective and privacy concerns are given the many data scandals and political entanglement. Recently, Facebook was fined $5 billion for its role in Cambridge Analytica.
In two highly publicized congressional hearings, Libra’s representatives were grilled by congress leaders who questioned their policies and sought explanations as to why the Libra Association had to oversee the Libra project.
Policymakers amped their criticism, reaching a Crescendo on Wednesday when Mark Zuckerberg was laid on for six hours, and further questioned by a California Rep. Maxine Waters about their Facebook’s cavalier attitude. She urged Facebook to halt their plans and instead first focus on addressing their weaknesses.
The anti-Libra Campaign
Vlad’s position that Libra is not a technology project has garnered support from several quarters. One user said he is willing to “advocate for the path that minimizes Libra’s chances of success.” A way of doing that, he explains, is to build Ethereum which is “fighting so that the global financial infrastructure will never be the private property of Mark Zuckerberg.”
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Source: CoinGape

US Congressman Comes in Support of Bitcoin; Calls it “Very Real, Very Important”

In an interview with Laura Shin, Patrick McHenry, the North Carolina Republican representative, said that Bitcoin is an important project with an immense future utility. He urges policymakers not to lump and classify this “very real, very important project” with Libra.
Bitcoin Different From Libra
Clarifying that his comments are not meant to disparage any project, it is McHenry’s view that a distinction must be made because Bitcoin is satisfactorily decentralized and still in its early days.
“I think Libra has opened a lot of new people’s eyes about the value of cryptocurrency. Libra is not a cryptocurrency, however. And we need to stop lumping it together with very real, very important projects that are out there like Bitcoin. The distinction between a wholly new financial invention like Bitcoin – I think that has enormous long-term value.”
Bitcoin Versus the USD
The debate around Libra is splitting policymakers. While leading blockchain developers insist that the Libra is not a technology but a political project, the views around Bitcoin are gradually changing.
For a long time, Bitcoin and cryptocurrencies have been labeled as facilitators for money laundering and terrorist financing, with the US President, Donald Trump weighing in and expressing his disdain for the so-called internet money.
In July, President Trump said he was not a “fan” of cryptocurrencies adding that they are not money and the US Dollar is the only dependable money that is stable and reliable.
“We have only one real currency in the USA, and it is stronger than ever, both dependable and reliable. It is by far the most dominant currency anywhere in the World, and it will always stay that way. It is called the United States Dollar.”
Trump’s comments were further reiterated by Brad Sherman, an anti-Bitcoin Congressman, who raised concerns that the proliferation of cryptocurrencies is a threat to the US Dollar’s dominance in the global financial system.
We Popped the Crypto Bubble in Q4 2017
Reports now emerge that elements from the Trump administration were architects of last year’s cryptocurrency winter. In 2018, Bitcoin slid to $3,200 while altcoins were disseminated as many cryptocurrency projects folded as prices fell.
The former head of the U.S. Commodity Futures Trading Commission (CFTC) Christopher Giancarlo revealed that the agency worked in cohort with the US Treasury and the SEC and the director the National Economic Council, Gary Cohn to pop the first bubble after the great Financial crisis of 2008-09 in a pro-market manner through the launching of Bitcoin Futures at the CME and the CBOE.
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Source: CoinGape

Coinbase CEO highlights his surprise, disappointment at pushback faced by Libra

The United States’ financial services industry “does not feel innovated,” according to Coinbase CEO Brian Armstrong, and he thinks that the “US should embrace anybody who’s trying to innovate in this area, even if they don’t like the company that it comes from.” In fact, this was a thought echoed by Facebook’s Mark Zuckerberg at […]
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Source: AMB Crypto

China launches first DLT application following Xi’s Blockchain-Bitcoin effect

China is all in on blockchain. Less than a day after Xi Jinping, President of China and General Secretary of the Communist Party of China [CCP], announced a sovereign effort to promote blockchain as a ‘core technology,’ the first DLT-powered application has been unveiled. According to Dovey Wan, Founding Partner at Primitive Capital, China has […]
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Libra’s threat to central banks raises questions about its launch

Facebook‘s Libra will find it difficult to get any support in the current ecosystem. Since its announcement back in June, criticism with regards to its centralized control and Libra’s inefficiency to come to terms with regulations has piled up on its development, with many now believing that Libra will never officially get approval for launch. […]
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Facebook Launches News Tab in Partnership with News Outlets to Publish Verified Stories

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Facebook Launches News Tab in Partnership with News Outlets to Publish Verified Stories
Facebook has announced the launch of a News feature with initial coverage in some parts of the United States.
Facebook Launches News Tab in Partnership with News Outlets to Publish Verified Stories

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China’s President Xi Jinping Seeks Blockchain Industry Domination

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China’s President Xi Jinping Seeks Blockchain Industry Domination
In a move to dominate the industry, Chinese president Xi Jinping has urged the country to accelerate the adoption of blockchain.
China’s President Xi Jinping Seeks Blockchain Industry Domination

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Libra needn’t be a cryptocurrency to do what it wants to do: Twitter CEO

Twitter CEO Jack Dorsey is the latest to comment on Facebook, Libra and CEO Mark Zuckerberg’s speech at Georgetown University, comments made at a recent event in New York. These comments were reported by The Hollywood Reporter, with Dorsey also addressing the role Twitter could have played in influencing the 2016 U.S Presidential elections. On […]
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Source: AMB Crypto