Fed’s Chairman Denounces Libra, Predicts Project’s Uncertainty To Surpass Regulatory Demands

Jerome Powell, Chairman of the U.S. Federal Reserve has issued a stern warning to Facebook along the lines of its Libra project, maintaining that developments of the highly controversial cryptocurrency project cannot proceed until the accurate regulatory procedure has been put in place.
In Powell’s words, “serious concerns” are yet to be expressed and must be addressed before developments and implementation procedures.
Facebook seems to be under the limelight recently, particularly as a result of its newly announced cryptocurrency project, Libra. In this global financial services provision, as many as 1.7 billion unbanked people globally are targeted with financial services. This, according to report would enable Whatsapp and Facebook users to send and receive money on the respective platforms.
As many come to believe in this inbound “new dawn”, several governments and financial agencies move to put Libra under strict regulations, a result of which Facebook had to halt the development and implementation of Libra initially planned to launch in 2020.
The announcement of Libra had initially spelled good luck for bitcoin. This news came at the time when bitcoin was just recovering from the 2018 bear markets. With excitements of Libra in the air, bitcoin caught a bullish trend and moved up quite rapidly to record a high all-time of 15 months at $13,100 around early June. As bitcoin tried to maintain this those good day, news of Libra’s uncertain future caused a setback and bitcoin moved down the charts once again, loosing around 10% within the last 24 hours.
Powell commented that the proposed Bitcoin rival, Libra being developed by Facebook posed some serious financial problems than anyone can imagine as of now. According to him,
“Libra raises many serious concerns regarding privacy, money laundering, consumer protection, and financial stability,” Powell warned, added he doesn’t think “the project can go forward” until these are addressed.
Adding that Libra doesn’t exactly fit into the current financial system and policies, Powell also expressed his views on how regulatory procedure Libra has to pass through before implementation.
“It’s something that doesn’t fit neatly or easily within our regulatory scheme but it does have potentially systemic scale,” he said. “It needs a careful look, so I strongly believe we all need to be taking our time with this. The process of addressing these concerns should be a patient and careful one, not a sprint.”
Mark Zuckerberg and his Libra team, according to report are currently preparing to attend a Senate hearing next week and have promised to follow due regulatory process and cooperate with regulators. However, the implementation of Libra in other regions like India and China still remains uncertain.
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Source: CoinGape

Facebook Officially Responds to US Congressional Committee’s Letter to Halt Libra Development

Libra Coin has been emerged as one of the hottest topics in the crypto industry – not just with positive remarks but definitely, the launch announcement faced a lot of criticisms. Besides every new criticizing remark, Facebook isn’t stepping back from what it committed to bringing to the 1.7 billion unbanked users.
Calibra CEO Responds US Congressional Committee’s Letter
As a response to a recent letter sent by official Congressional committee to halt the development of Libra coin, Facebook wrote a personal note, detailing what it means to them and how they view community & regulator’s view on Libra Coin. On July 3rd, David Marcus, CEO of Calibra Wallet published a note, entitling ‘Libra, 2 weeks in”. In a detail note, Mr.Marcus explained, decentralization queries revolve around Libra, claiming that Libra is definitely not as open as Bitcoin, the mission behind Libra Association, why billions of people cannot access to current financial services and henceforth the emergence of Libra and eventually pinpointing at their plans to engage with regulators and lawmakers.
Facebook will not control the network, the currency, or the reserve backing it. Facebook will only be one among over a hundred members of the Libra Association by launch. We will not have any special rights or privileges.
Ready To Talk with Law Makers
Whenever regulator’s note comes in, Facebook often found of adding a positive note “we’re looking forward to discussing’, in fact, it had initially mentioned in its whitepaper – we believe in collaboration with regulators & experts across a variety of industries. In addition, with ongoing criticism by global regulators, including US Congressional committee – Facebook openly responded that they’re ready to talk with the policymakers.
We’re talking about something new, at scale in a very regulated industry, and if this is not done right, it could definitely present systemic risks no one wants, Marcus writes.
Believing that, Marcus states that they’re looking forward to having collaboration with central banks, regulators, lawmakers to ensure that Libra resolves the issues existed in the existing financial system “notably around money laundering, terrorist financing, and more”, the note reads.
Looking at Facebook’s letter, it is noticed that the team is not in a plan to halt Libra development – rather they’re looking forward to continuing to engage with the various communities and stakeholders. Conclusively it added;
In that spirit, I look forward to testifying in Congress in front of both the Senate Banking and House Financial Services Committees in the weeks to come.
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Source: CoinGape

Facebook CEO & Head of Libra Association Talks “What Libra Association Exactly Mean”

Since the day Facebook announced the launch of its cryptocurrency, Libra has to appear on news bulletin every new day. Today, CNBC reported that Facebook’s CEO Mark Zuckerberg and head of Libra Association, David Marcus talks about central bank involvement into Libra Association and what does 100 members for Libra Association really mean.
Mark Zuckerberg Talks About Libra Association
As stated by Facebook on it’s Libra Whitepaper, Libra Association is a non-profit organization which takes charge of its cryptocurrency – however, it has revealed the names of few of its founding members whilst aiming to reach 100 members by upcoming year. On June 29, 2019, CNBC shared a clip of Facebook’s CEO speaking about Libra Association, he states that;

Take a listen to what @facebook founder Mark Zuckerberg just said about the launch of the new Libra cryptocurrency $FB #Libracoin pic.twitter.com/2cEfp9f27v
— CNBC’s Fast Money (@CNBCFastMoney) June 26, 2019

Building the financial system is not the kind of thing that company can do buy and sell – so that again – we helped and played a role in standing strong but the Libra Association is an independent organization and we’ll have one vote in it – by the time we hope to have 100 founding companies and we’ll be one of the voice.
We’d Love Central Bank Experience – Head of Libra Association
Besides Zuckerberg, David Marcus who is the in charge of Facebook’s Libra Association strongly believes that a person with experience in Govt and Central banking activities will be one of the great assets for Libra. In Marcus’s words;
“We need someone who knows how economies tend to work, who understands how to operate in a very complex, decentralized governance type of environment.
He continued adding that a person would also be a great leader who will be able to “carry the message on behalf of all the members”. Marcu told The Information in a Q&A published on June 28, 2019; that someone will be better;
Rather than have each and every one of us have piecemeal conversations left and right with all of the different governments and regulators that this whole network will be subject to.”
Moreover, addressing to an earlier report released by NewYork Times Report” that reads “Banks like Goldman Sachs and JPMorgan Chase” rejected Facebook’s invitation to join Libra Association, Marcus reportedly denied and also stated “they absolutely & strongly deny” the report. He says that the talk is still going on and hopes to get strong banking players as members of Libra Association
“I want to absolutely and strongly deny the fact that we’ve approached banks and banks have said no,” Marcus said. “We have had conversations with banks. We still have conversations with banks. And my expectation is that by the time this thing launches next year you will have banks that are going to be members of this.”
Image Source – Shutterstock
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Source: CoinGape

Facebook as a Major Thief: From Idea to Logo

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Facebook as a Major Thief: From Idea to Logo
Wall Street Journal readers found an interesting add between their finance news. It appears as if not only Libra’s logo is subject of discussion: one of the defining characteristics of Facebook’s project is seemingly inspired in a key element of Hedera Hashgraph.
Facebook as a Major Thief: From Idea to Logo

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Source: CoinSpeaker

VC Investor: Facebook’s Crypto Has 50% Chance of Ever Launching, Here’s Why

Libra, Facebook’s new crypto and rival to Bitcoin, the dollar, banks, businesses like PayPal, and stablcoins all at once, captured the entire world’s interest yesterday. The crypto industry was divided on whether or not the move would benefit the ecosystem at large, or if it could potentially destroy Bitcoin and altcoins.
The concerns and hope may be for naught, as Libra may never actually see its planned 2020 rollout. According to venture capitalist Ari Paul, Facebook’s crypto only has a 50/50 chance of ever seeing the light of day, and that regulatory hurdles and lobbyist blockades may interfere with Mark Zuckerberg’s plan to replace create the first widely adopted version of digital money.
Facebook Crypto In Jeopardy Already, 50/50 Chance of Launching
Libra was announced yesterday morning by Mark Zuckerberg to mixed reactions. Regardless of your stance on if the news was positive or negative for the crypto industry, there’s no denying the significance a major mainstream tech firm that’s used by the public masses daily will have on the entire ecosystem.
Related Reading | Bitcoin Becomes “Money,” One Satoshi Now More Valuable Than Some National Currencies
But that’s only if it ever launches. And according to one venture capitalist, there’s only a 50% chance Libra ever launches due to the “dozens of different legislative and regulatory authorities that will explore blocking it.”

I have no special insights, but my best guess is that Libra is 50/50 to ever launch. There’s dozens of different legislative and regulatory authorities that will explore blocking it. Bitcoin and other permissionless cryptocurrencies win to it launching.
— Ari Paul (@AriDavidPaul) June 19, 2019

Such a scenario isn’t difficult to imagine, with Libra’s announcement not even being in circulation 24 hours yet, when a top democrat in Congress, House Financial Services Committee Chairwoman Maxine Waters (D-CA), demanded that Facebook halt the development of Libra.
Senator Sherrod Brown (D-OH) also plans to sick government watchdogs on Facebook, citing that they are “already too big and too powerful, and it has used that power to exploit users’ data without protecting their privacy.”
The Government Can Stop Libra, But They Cannot Stop Bitcoin
The differences between Libra and decentralized cryptocurrencies are already appearing, even just 24 hours after Facebook’s big announcement. Libra is already at risk of being blocked by governments, who may or may not be influenced by big banks though their lobbying power.
Related Reading | Bitcoin to Surge Past $20,000? Facebook’s Libra Could Send BTC Flying
Bitcoin on the other hand, cannot be stopped. Bitcoin was designed to be outside of the reach of the governments, banks, and superpowers that have controlled money and humanity through it for centuries. It’s already showing its resiliency next to Libra, and proves that being borderless, decentralized, and unstoppable is more valuable than most consider.

43,000 bitcoin were moved today in a single transaction.
That's $400,000,000 moved for a $2.38 fee that took about 15 minutes.
No government, bank or third party had to verify the transaction, nor could they have stopped it.
The true power of bitcoin.
— Rhythm (@Rhythmtrader) June 17, 2019

While Libra may not ever reach its planned 2020 launch, in the meantime it’ll do wonders for the crypto ecosystem by exposing it to the masses, governments, and more. If it does launch, it has a real chance at replacing money. If it doesn’t, there are two main scenarios at play: Libra brings negative attention and heavy-handed regulation to the space that harms Bitcoin; or Bitcoin continues to unexpectedly outshine Libra, demonstrating the benefits of a borderless, decentralized cryptocurrency to the entire world on a grand scale like never before.
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Source: New feedNewsBTC.com

Facebook Started Discussions with CFTC Over Its GlobalCoin Initiative

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Facebook Started Discussions with CFTC Over Its GlobalCoin Initiative
Facebook is in talks with the U.S CFTC to find out whether its GlobalCoin project will fall under the agency’s regulatory requirements.
Facebook Started Discussions with CFTC Over Its GlobalCoin Initiative

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Source: CoinSpeaker

Facebook Reportedly Discussing Its Crypto Plans With Gemini’s Winklevoss Twins

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Facebook Reportedly Discussing Its Crypto Plans With Gemini’s Winklevoss Twins
Facebook is giving an aggressive push to its crypto plans while having a word with crypto exchanges and high-frequency trading platforms. The company plans ahead to make major inroads in the online payments industry.
Facebook Reportedly Discussing Its Crypto Plans With Gemini’s Winklevoss Twins

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Facebook Cryptocurrency, ‘GlobalCoin’ Set to Launch in Q1 of 2020: Report

Facebook has been actively working on its new venture, which it says, will ‘compete with banks.’ The secretive cryptocurrency endeavor was earlier taking shape through hiring drive for the team. Recently, it was formally inducted as a subsidiary in Switzerland under ‘Project Libra‘ on 17th May 2019.
Reportedly, Facebook is planning to launch its cryptocurrency named ‘GlobalCoin’ in a dozen countries by the first quarter of the next year in 2020. Furthermore, the social media giant plans to test the cryptocurrency by the end of this year.
The CEO and founder of Facebook, Mark Zuckerberg, has spoken with the Governor of Bank of England, Mark Carney about the timelines and procedures.
Project Libra – GlobalCoin
Furthermore, creating a cryptocurrency will be less complicated than adding actual value to it in dollars. Hence, Project Libra will seek to establish partnerships with existing banks and payment providers to enable the exchange between FIAT currency and GlobalCoin. Reportedly, it is holding talks with Western Union and taking advice from the US Treasury Office.
Also Read: Facebook Overturns Ad Ban on Blockchain Projects; Will Crypto-FB Go Mainstream?
The US Senate and Banking Committee wrote an open letter to Facebook CEO asking the details of their digital currency projects. Their concerns surround the fact that, if Facebook releases a digital currency, people around the world will transact in it. The Committee also expressed concerns regarding the privacy issue on Facebook. The firm must also take appropriate security measures to safeguard the funds from cyber-attacks.
Garrick Hileman, a researcher at the London School of Economics, noted that GlobalCoin would be one of the significant events in the history of cryptocurrencies. According to his estimates, 30 million people use cryptocurrencies compared to Facebook’s 2.4 billion users.
The GlobalCoin is expected to be released as a ‘stablecoin‘ to avoid volatility and speculation. It is expected to reduce the cost of transactions for users and also bring in revenue worth billions into Facebook. It will primarily benefit the unbanked population of the world with access to the internet would be able to send and receive value anywhere in the world.
How do you think Facebooks’ GlobalCoin will affect the cryptocurrency markets? Please share your views with us. 
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Source: CoinGape

Facebook: US Senator Demands Mark Zuckerberg To Share Crypto Project Details

Besides the king of Social media world, Facebook is on its race to hit the crypto market as well but this becomes a serious concern for US Senator. The U.S. Senate Banking Committee released an open letter, demanding Facebook to detail about its crypto-oriented Libra project.
Facebook’s earlier privacy breach comes as the first concern for the Banking Committee which they have stated in a letter sent to Facebook on May 09, 2019. According to the letter, addressing Facebook’s founder, chairman, and CEO Mark Zuckerberg, Banking Committee has referred to the Wall Street Journal’s article which was first to report Crypto-currency based Lira payment system. It was revealed that Facebook by acquiring rights to the “Libra” trademark for its cryptocurrency project, is reportedly recruiting dozens of financial firms and online merchants.
Nevertheless to note that banking committee has raised the eyebrows on following questions and asked Zuckerberg to respond.
1. How would this new cryptocurrency-based payment system work, and what outreach has there been to financial regulators to ensure it meets all legal and regulatory requirements?
2. What privacy and consumer protections would users have under the new payment system?
3. What consumer financial information does Facebook have that it has received from a financial company?
4. To the extent, Facebook has received consumer financial information from a financial company, what does Facebook do with such information and how does Facebook safeguard the information?
5. Does Facebook share or sell any consumer information (or information derived from consumer information) with any unaffiliated third parties?
Besides these, two more questions that Committee asked was; whether Facebook holds information about individual’s credit standing/capacity and if it does, then, how does Facebook ensures such information isn’t used in violation of the Fair Credit Reporting Act.
Given the above key concerns, Committee expects Zuckerberg to respond and let the committee know the status of Facebook Coin ahead of anything on ‘Libra Project’. Nevertheless, Facebook with over 2.38 billion monthly active users will likely influence a lot more people to enter into a crypto era – but – at the same time, the US Senate Committee wants to keep its close eye on privacy aspect that Facebook is expected to deal with.
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Source: CoinGape

Facebook Sues Rankwave Over Data Misuse: Another ‘Cambridge Analytica’?

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Facebook Sues Rankwave Over Data Misuse: Another ‘Cambridge Analytica’?
Facebook announced that another Cambridge Analytica may have come to light, while the company’s co-founder Chris Hughes slammed FB and its CEO for what they have become.
Facebook Sues Rankwave Over Data Misuse: Another ‘Cambridge Analytica’?

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Source: CoinSpeaker

Binance’s CFO Denounces Mark Zuckerburg for Facebook Coin’s Centralization

Wei Zhou, the CFO of Binance Exchange recently expressed serious concerns about the anticipated ‘Facebook coin.’ Apart from raising centralization doubts, Zhou, the former classmate of Mark Zuckerberg raised questions on the vision of the Social Media Giant as well.
According to him, cryptocurrency and blockchain should be aimed at providing “an open system”, whereas Facebook has attempted to monopolize the system by building a custom cryptocurrency. Zhou further predicted that,
“I suspect it’s going to be a closed Facebook ecosystem,” Zhou told the media. “Their goal is to wall off other people from coming into their system. Their goal is not to open up their system to other people.” He also added that,
“The thesis behind [crypto] tokens in general, the blockchain in general — it’s an open system where anyone can use it if they spend the time to adopt the technology.”
Cryptocurrency Must Involve a Decision Making Community
Facebook has more than 2 billion active users on its social media platform. However, for a large number of users that it hosts on its network, much or almost all of the control of the network rests with the company. Furthermore, Zhou noted on the issue that:
“One of the key things that we’ve seen is that the blowback against Facebook is it’s not a community driven organisation,” he said. “Key decisions are made by one person.”
Also Read: Not Facebook, Cryptocurrency Will be The Strongest Social Network: Cameron Winklevoss
This is coming from a former classmate and a leading figure in the space. Zhou also said he believes that Binance’s continued success means the company has a duty to help grow the sector as a whole.

“Our priority at the moment is basically how to help the ecosystem to grow: How do we grow the blockchain and cryptocurrency ecosystem,” he said.

Binance has undertaken a lot of projects like the Binance DEX, Binance Chain, Launchpad, the Binance (BNB) coin and along with the Binance online academy and charitable organizations as well. Hence, the CFO of Binance Exchange outlined the vision of the Binance community towards building a blockchain ecosystem.
“Our priority at the moment is basically how to help the ecosystem to grow: How do we grow the blockchain and cryptocurrency ecosystem,”
Moreover, he also feels that a plethora of ‘tokens’ could be flooded in the market in the near future and their interoperability on a common ecosystem is paramount to their feasible usability.
Do you agree with Wie Zhou? Please share your views with us. 
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Source: CoinGape

Facebook CEO Mark Zuckerberg Faces Shareholders’ Backlash, Asked to Step Down

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Facebook CEO Mark Zuckerberg Faces Shareholders’ Backlash, Asked to Step Down
Facebook’s shareholders have accused Zuckerberg of resolving to dictatorial tactics and leveraging an excessive control on the company’s governance.
Facebook CEO Mark Zuckerberg Faces Shareholders’ Backlash, Asked to Step Down

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Jeff Bezos Will Own 75% of Amazon (AMZN) Stock After Divorce

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Jeff Bezos Will Own 75% of Amazon (AMZN) Stock After Divorce
Amazon founder and CEO Jeff Bezos will keep 75% of the shares in the ecommerce giant that were jointly held with his wife, MacKenzie — and he retain full voting control of all of the couple’s shares — after the two finalized terms of their divorce.
Jeff Bezos Will Own 75% of Amazon (AMZN) Stock After Divorce

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Instagram Checkout Will Make Facebook $10B Richer Every Year: Deutsche Bank

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Instagram Checkout Will Make Facebook $10B Richer Every Year: Deutsche Bank
According to the recent forecast provided by Deutsche Bank, a social media company Facebook is going to make an enormous revenue of $10 billion each year by 2021.
Instagram Checkout Will Make Facebook $10B Richer Every Year: Deutsche Bank

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Facebook’s Facecoin Set to Replace the U.S. Dollar, Not Bitcoin: Kik CEO

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Facebook’s Facecoin Set to Replace the U.S. Dollar, Not Bitcoin: Kik CEO
In a blog post, Kik Ceo Ted Livingston explained how Facebook’s coin may replace the US dollar as the global reserve currency.
Facebook’s Facecoin Set to Replace the U.S. Dollar, Not Bitcoin: Kik CEO

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Source: CoinSpeaker