G7 Says that Bitcoin Failed but Libra Poses Threat to Financial Stability

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G7 Says that Bitcoin Failed but Libra Poses Threat to Financial Stability
G7 has just recently released a report addressing a long list of concerns it has with global stablecoins like Libra.
G7 Says that Bitcoin Failed but Libra Poses Threat to Financial Stability

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Source: CoinSpeaker

Libra Association Signs Charter, Announces Board of Directors

Facebook, in its meet at Geneva, has announced its 21 founding members. The association further announced its board of directors.  
Uber, Lyft & Spotify Among Founding Members
After the exit of top payments companies, Facebook has finally announced its team of founding members. Some of the members include Uber, Lyft, and Spotify. The team met in Geneva to sign the Libra Association charter which will govern Libra. Also, the board of directors will consist of David Marcus, Facebook’s leader for the project, and representatives from Andreessen Horowitz, PayU, Kiva Micro funds, and Xapo Holdings.
Spotify in a statement said, 
“Though it is still in the early stages, we look forward to exploring the opportunity offered by the Libra Association to empower billions of people globally, especially in financially underserved markets,”
2/3rd Majority Needed To Bring An Amendment
Per the Council’s interim articles, each member has one vote and is expected to withdraw from the project if there is a conflict of interest. Also, if the council needs to adopt a new amendment, change a Libra policy or dissolve the association, it should be passed by two-third members of the council.  
In case any of the remaining members of the Libra Council wants to exit, they have a provision for transferring their membership “under limited circumstances”  Each member is expected to invest $10 million to fund the association and launch an incentive program for libra. 
From the Co-Creator’s Desk
David Marcus, the co-creator of Libra said that it was motivating to see many representatives coming from different industries having a common mission. 
Source- Twitter
Zuckerberg to Face Lawmakers Next Week
The previous week saw Visa, Mastercard, Stripe and Mercado Page exiting from the project. thus, leaving PayU as the only payments company on the council. The project hit another snag when BookingHoldings also exited the project. 
Facebook CEO Mark Zuckerberg will face lawmakers next week to defend the project at a hearing in front of the House Financial Services Committee. Zuckerberg will be the sole witness at the hearing on the 23rd of October, which is titled, “An Examination of Facebook and Its Impact on the Financial Services and Housing Sectors.”
In July, Chairwoman Waters and other Committee Democrats sent a letter to Facebook. In the letter, they requested an immediate moratorium on the implementation of Facebook’s proposed cryptocurrency, Libra, and digital wallet, Calibra.
G7 Hardens Stance on Libra
Meanwhile, the G7 economies have hardened their stance on Facebook’s Libra. They have further said that Libra should not proceed further till it gains regulatory clarity. The report by G7 group alleges that Libra is a risk to the global financial system.
Will the signing of the Libra Charter bring any good news for Libra? Let us know, what you think in the comments below!
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Source: CoinGape

After Paypal, Mastercard, Visa, Stripe and eBay Abandoned Facebook’s Libra

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After Paypal, Mastercard, Visa, Stripe and eBay Abandoned Facebook’s Libra
Mastercard, Visa, eBay, Stripe and Mercado Pago have all pulled out of the Facebook-led Libra Association following PayPal, which pulled its own support of the project earlier this week.
After Paypal, Mastercard, Visa, Stripe and eBay Abandoned Facebook’s Libra

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Libra: US Senate House Wants Facebook’s Mark Zuckerberg to Testify – Report

The US Senate House of Financial Services Committee has been completely opposed to Facebook’s cryptocurrency project, Libra. Much of their disagreement is steeming from their dislike for Mark Zuckerberg. Reportedly, the Committee under has asked him to testify before January 202.
“We need to get Mark Zuckerberg here!” – Senator Sherman during David Marcus’s (Libra Head) hearing on 17th July with the committee.
Although David Marcus tried to emphasis on the fact that Libra would work independently of Facebook Inc., Congress-men and women were not satisfied with the response. The sheer user base of Facebook (about 2.38 billion) likely makes it the leading member and benefactor of the council.
Facebook Inc Chief Operating Officer Sheryl Sandberg has earlier agreed to testify before Oct. 29. However, the congression source told the media that it would not accept Sandberg’s testimony and instead asked Zuckerberg to attend.
On the progress from the Association, Libra has planned a meeting of the initial governing council members in October. However, reportedly, leading members are getting cold feet because of the regulatory oversight on the proposed plan. MasterCard, Visa, PayPal, and Stripe Inc. have started to show signs of backing out. The involvement of firms in the October meeting will be critical for the project.
Concerns Galore
Facebook’s Libra has received a lot of criticism from the Central Banks of the world. The main reason for worry has been the capital outflow from central banks to the new Libra Reserve. Recently, the CEO of Apple, Tim Cook, reiterated the same. He told Les Echos,
“No. I really think that a currency should stay in the hands of countries. I’m not comfortable with the idea of a private group setting up a competing currency,”
If Zuckerberg agrees, he can also expect the Senate House to dig up the past and defame Mark for breach of privacy in the past. As CEO and Founder, he was heavily criticized for their unethical involvement in the US Presidential Election of 2016.
Furthermore, in another recent congressional meeting of the SEC with the House of Financial Services Committee, the argument for Libra as ‘security,’ ETF, or mutual funds became widely accepted. While the SEC refrained from making any direct statement on the matter, it would be one of the most important topics of their hearing.
Do you think Zuckerberg would testify before congress for Libra or threat its end? Please share your views with us. 
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Facebook Hints at Suing the U.S. Government in Zuckerberg Audio Leak

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Facebook Hints at Suing the U.S. Government in Zuckerberg Audio Leak
Mark Zuckerberg said that if the Democratic Presidential candidate Elizabeth Warren was to come to power, and pursue her agenda of breaking the Big Tech companies, Facebook won’t step back from fighting the U.S. government in the court.
Facebook Hints at Suing the U.S. Government in Zuckerberg Audio Leak

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Facebook’s Libra needs committed members, claims David Marcus as Visa and Mastercard rethink their association

Recently, social media giant Facebook announced its entry to the crypto-industry with its native currency, Libra. Despite its massive user base and financially stable establishment, the social media platform hasn’t been lying on a bed of roses however, as the SEC has been questioning every move made by Facebook. Recently, The Verge revealed a leaked […]
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Libra Is an Important Crypto Project, Coinbase CEO Says

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Libra Is an Important Crypto Project, Coinbase CEO Says
Echoing Marcus’ forecast that Libra could potentially change the world, Armstrong called Facebook’s project one of the most important cryptocurrency projects in development.
Libra Is an Important Crypto Project, Coinbase CEO Says

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Snapchat Pulls Out Big Guns Against Facebook in Ongoing FTC Anti-Trust Investigation

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Snapchat Pulls Out Big Guns Against Facebook in Ongoing FTC Anti-Trust Investigation
Snapchat has presented a dossier to the Federal Trade Commission, to shore up the current investigation into unbecoming tactics Facebook reportedly used against the firm, in a bid to drive it into the ground.
Snapchat Pulls Out Big Guns Against Facebook in Ongoing FTC Anti-Trust Investigation

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Can Libra Expect A Green Light As Facebook Greets Regulators With Open Arms?

Social media giant Facebook has taken a bold step to manage the hurdles it has been facing from regulators. According to a recent report, Facebook CEO, Mark Zuckerberg, has made himself accessible to US lawmakers regulators. As this might help the popular social media company gain some respect after the Cambridge Analytica fiasco, it is likely that it will also affect Libra positively.
Facebook Shows Readiness To Obey Regulations
This week was the first time since last year that Zuckerberg made himself readily accessible to U.S. lawmakers and even the President of the united states, Donald Trump. According to the report, during Zuckerberg’s recent visit to Washington DC, Facebook was the one to request meetings.
According to Matt Grossmann, an associate professor at Michigan State University,
“They’re going to say it’s a successful trip as long as they improved relationships and they made senators more likely to call Facebook if they have a problem or they’re thinking of legislating in the area, “
However, this generous visitation was strategic and Zuckerberg was said to have attended the majority of the meetings not being under any oath, a situation which means any commitment made by either him or Facebook could be reversed.
Regulators Vs Libra
Considering Facebook’s proposed cryptocurrency project, Libra, Facebook making friends with regulators could be a good omen. Libra has faced a considerable level of regulatory scrutiny since its announcement. The more restless regulators around the world weighed the feasibility of incorporating Libra into their existing financial frameworks, the more evident it became that Libra was not a welcome idea.
France ranks high among the countries which have openly denounced Libra. According to a recent report by Coingape, French Finance minister, Bruno Le Maire made a clear warning about Libra. In his statement,
“All these concerns around Libra are serious. So I want to say this with a lot of clarity: In these conditions, we cannot authorize the development of Libra on European soil.”
Again, European Central Bank’s (ECB) legal official, Yves Mersch, also weighed in by giving a disapproving comment on Facebook’s controversial planned digital currency project calling it “beguiling but treacherous.” According to Yves,
I sincerely hope that the people of Europe will not be tempted to leave behind the safety and soundness of established payment solutions and channels in favor of the beguiling but treacherous promises of Facebook’s siren call, ”
Do you think that Zuckerberg’s meetings with US lawmakers will fruitful and Libra will get a green light to launch? Share your views with us in the comments below. 
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Facebook’s Libra to Dominate Discussions during U.S. Lawmakers’ Visit to Switzerland

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Facebook’s Libra to Dominate Discussions during U.S. Lawmakers’ Visit to Switzerland
The U.S. House Financial Services Committee delegation plans to visit Switzerland to exchange views about Facebook’s Libra with the Swiss FDPIC Adrian Lobsiger.
Facebook’s Libra to Dominate Discussions during U.S. Lawmakers’ Visit to Switzerland

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Libra Hearing: “We Need to Bring Mark Zuckerberg here”, demands Senator Sherman

The second phase of the Senate Hearing for Libra with David Marcus began with his testimony. The first phase with the Housing, Banking, and Urban Affairs Committee focused on the privacy and security issues of the proposed cryptocurrency by Libra.
Today, the Committee on Financial Services headed the hearing titled, ‘Examining Facebook’s Proposed Cryptocurrency and Its Impact on Consumers, Investors, and the American Financial System.’ 
Their concerns were focused around the nature of the business, their plans, degree of autonomy, and most importantly, its vision in the Financial Service Industry. The Senators were evidently concerned about the challenge that Libra is currently posing to the Federal Reserve. Senator Meeks noted that,
“[it could bring] down the entire Federal Reserve and affect the Financial Services industry”
Maxine Waters, Chairwoman of the Committee, headed the meeting. She began with the fact that even though David emphasizes that Facebook will be one in a hundred members of the association, it is currently leading the Association. She said,
“No money has been invested by other members of the Association”
David Marcus Accepted the fact, however, noted that the code is open source and they will not control the codebase.
Is it an ETF, Commodity, or a Currency?
Senator Foster raised the questions around the volatility and the fact that they need to clear the 1940 act, which is designed to protect rent payers from paying excessive rent on different months. He said, “this looks like an ETF to me.”
David replied by saying,
“No will buy Libra as an investment because of its stability… You cannot use an ETF for payments.”
Similar doubts were raised in the beginning by other regulators as well. David noted that,
“Libra is not a security, not an ETF, maybe a commodity. Designed to be a payment tool.”
Chairwoman Waters noted, “That is not a commitment.”
Congresswoman Moloney was firmly against the idea and noted that currencies and economic stability are issues that must be managed by the Government. He also put a healthy condition over the release. She asked for a recorded commitment for a pilot program to be released on a small scale before the actual launch. She said,
“Creation of a currency is the work of the Government… Will you commit to a small pilot program with 1 million users with the permission of regulators… Are you willing to make that commitment right now?”
Marcus deferred in making any commitment apart from the fact that they will be dedicated in their efforts to impose KYC and AML regulations and complying with the rules.
It seemed like David Marcus has mastered the art of diplomatic replies. He refuses to make any commitment and has also deferred many questions with a strong statement that underlines the following statement,
We will take the time to get this right
“Zuckerberg can’t print money.”
Senator Sherman had the most influential views among all the others as he warned David Marcus and the Libra Association of the ramifications that they would be faced within this project. He said,
“A hundred lawyers will tell him [Mark Zuckerberg] what he is doing is legal and he, therefore, is safe. But someone within the polictic of this country needs to explain to Zuckerberg, that if cryptocurrency is used to finance the next terrific terrorist attack against Americans. A hundred lawyers standing in a row charging $200 an hour are not gonna protect his rear end from the wrath of the American People.”
Furthermore, he firmly asked for Mark Zuckerberg’s attendance before the committee. According to him, in the end, Mark is the sole orchestrator of this plan, and that could make him a higher security risk that he currently posses with privacy issues.
The senators do not feel comfortable with handling the approval to this project given that Facebook’s role in it. However, some of them have praised the initiative and innovative insight. Nevertheless, delay and a lot of regulatory hurdles are projected in the future for the Libra Associations.
The Senators continued to question about Libra and Calibra. Currently, at press time, the meeting is in a recess. Bitcoin price has reacted positively given its decentralized nature.
BTC/USD 15-minute chart on Bitstamp (TradingView)
Bitcoin touched a low around $9000 earlier today. However, it has been on the rise since then. The price of Bitcoin rose from $9577 when the meeting began to touch a high above $9800 momentarily.
Do you think Libra will eventually be given a green signal? Please share your views with us. 
 
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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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