The Facebook-backed Diem association has moved its operational base to the United States from Switzerland. The crypto project, which envisages a US-dollar backed stablecoin, had earlier applied for a payment system license with FINMA, the Swiss regulator. “While our plans take the project fully within the US regulatory perimeter and no longer require a license from FINMA, the project has benefited greatly from the intensive … Continue reading Facebook-backed Diem Association Moves Operations to the United States from Switzerland
Facebook is planning to roll out its Libra blockchain with digital equivalents of national currencies, according to a report in The Information. It is a change in strategy for the social media behemoth, which faced backlash from national governments after revealing plans to introduce a custom token, also called Libra, backed by a basket of currencies for transactions on its blockchain. But the company has … Continue reading Facebook’s Blockchain May Be Launched without Libra Token
The contours of regulatory classification for Libra, Facebook’s cryptocurrency and blockchain, are becoming clear, at least, in Switzerland. In a guidance note for stablecoin regulation, the Swiss financial regulatory authority FINMA recommended an “indicative classification” of payment system license for Libra. The license is subject to the AML act and requires companies to account for additional risks, such as “bank-like risks.” The guidance also stated … Continue reading Facebook’s Libra Association Applies For Payment System License From Swiss Regulatory Authority FINMA
Facebook’s cryptocurrency and blockchain Libra continues to generate headlines and commentary from politicians and experts alike. The latest one involves the European Central Bank’s legal official Yves Mersch who described the social media network’s plans for its cryptocurrency as “beguiling but treacherous.” Mersch joins a chorus of voices and officials from Europe’s governing authority who have criticized Facebook’s plan to launch a blockchain and cryptocurrency … Continue reading Facebook’s Libra: A Beguiling but Treacherous Plan with Many Known Unknowns
Even as U.S. lawmakers remain unconvinced about the merits of its crypto-and-blockchain venture, Facebook is ramping up its lobbying efforts in the nation’s capital. The social media behemoth is reported to have added FS Vector to its growing list of lobbyists. John Collins, who previously worked as the head of policy at Coinbase, leads the company. The latest move after a Switzerland trip by U.S. … Continue reading Facebook Adds Another Lobbyist To Convince Congress About Libra
During a June earnings report, Facebook had cautioned that its blockchain and cryptocurrency Libra may not launch due to regulatory pressure from around the world. That future prospect seems to have become more real with recent developments. After governments and international organizations piled on the project, it is the turn of Facebook’s partners to ratchet up pressure. According to a Financial Times report, three members … Continue reading Tensions Rise In Facebook’s Libra Association Amidst Regulatory Pressure
Facebook’s Libra project, already under fire from regulators around the world, is being probed by the European Union. EU antitrust officials have sent questionnaires to Facebook’s partners in the project requesting details about it, according to reports. “The Commission is in particular concerned about the possible competition restrictions that may result from the Association, especially with regard to information that will be exchanged and the … Continue reading Facebook’s Libra Project Is Being Probed by EU Officials: Reports
Given the spotlight on Facebook, it is sometimes difficult to remember that the Libra Association council has other members. When it was launched in June this year, the association listed 28 members. The list was a diverse one and included the likes of payment processors, such as Mastercard and Visa, and non-profits like Kiva and World Women’s Banking. But little is known about their role … Continue reading What are Facebook’s Libra Partners Thinking?
On Thursday Jens Weidmann, a high-ranking official at the European Central Bank said that stablecoins should not alarm anyone in the financial world. However, he emphasized the need for heightened awareness amongst users of stablecoins. Weidmann said that anyone planning to use stablecoins should ensure that all questions regarding their preferred stablecoin had been cleared up. While Weidmann is enthusiastic about stablecoins, particularly the Facebook … Continue reading ECB Official Says Stablecoins Are Not Cause For Concern
One of the most interesting moments during the two days of hearing to understand and evaluate Facebook’s Libra project occurred when Congresswoman Katharine Porter (D-CA) asked panelists which regulators were appropriate for the cryptocurrency. “I am not sure if this (Libra) is a problem for my investor protection subcommittee or my consumer protection subcommittee,” she said, referencing the confusion about whether Libra is an ETF … Continue reading What Did The Facebook Libra Hearings Accomplish?
There was no love lost for Facebook’s Libra on the second day it was presented before lawmakers. David Marcus, head of Libra, was again the main witness at the House Banking and Finance Committee’s hearing to evaluate the impact of Facebook’s proposed cryptocurrency on consumers and the financial system. A Different And Similar Hearing But there was a key difference between yesterday’s hearing, when senators … Continue reading Libra Faces Congressional Ire In Second Hearing
“Trust is primordial,” David Marcus, head of Libra at Facebook, told senators at a hearing about the company’s plans for a cryptocurrency on its platform. But Marcus had a tough time gaining the supposedly – primeval emotion from the group facing him. The hearing was remarkable for two reasons. First it was held approximately a month after the social media behemoth announced its intentions for … Continue reading Libra Chief David Marcus Fails To Gain Senate Trust
Facebook’s Libra cryptocurrency will “benefit” tax authorities at the household level and consumption level, according to Libra’s policy and communication chief Dante Disparte. This means that a sales tax will be applicable to purchases made using the Libra token. But investors may escape the IRS’ dragnet by avoiding capital gains tax, according to Christian Catalini, head economist at Libra. This is primarily because Libra is … Continue reading Libra Will Incur Sales Tax: Techcrunch
Facebook’s Libra project continues to generate heat among legislators and policymakers. Testifying before the House Financial Services Committee this morning, Federal Reserve Chairman Jerome Powell said the project raised “serious concerns regarding privacy, money laundering, consumer protection and financial stability.” He said the project cannot be allowed to go forward until further details about it are released. Facebook announced Libra, a blockchain and cryptocurrency, with … Continue reading Facebook’s Libra Raises “Serious Concerns” – Fed Chief Jerome Powell
Since its launch two weeks ago, Facebook’s cryptocurrency and blockchain has generated a maelstrom of reactions from regulators, commentators, and developers. Yesterday David Marcus, president of the initiative at Facebook, took to the social media platform to address criticism aimed at it. Of Decentralization and Financial Inclusion Chief among them is that Libra is not a decentralized system. Decentralization is often touted for cryptocurrencies because … Continue reading Facebook’s Libra Chief Addresses Criticism
Banks in the European Union are setting up an instant payments system that could roll out as early as 2020 in response to Facebook’s Libra announcement, according to a Reuters report. Etienne Goose, director general of the European Payments Council, pointed out to the publication that big technology firms had the advantage of being a global unit unlike the fragmented European banking industry. He was … Continue reading EU Banks Are Racing Towards Instant Payments In Response To Facebook’s Libra: Reuters
Questions and controversies continue to dog Facebook’s entry into blockchain and cryptocurrencies. According to a report in the New York Times, none of the 27 partners in Libra, the company’s crypto venture, have signed binding agreements regarding their participation. Instead they have opted for nonbinding agreements that do not oblige them to promote or use Libra. An Impressive List With Membership Benefits The list … Continue reading Facebook’s Partners in Libra Have Not Committed To It: NYT
Call it the Libra effect. Bitcoin price rallied and broke past the $9,000 mark in the breathless run up to Facebook’s announcement of Libra, its cryptocurrency and blockchain, to provide banking services in emerging markets. There was an impressive 23% increase in its price within a week. (For those keeping count, the cryptocurrency is up by more than 150 percent since the beginning of this … Continue reading How Did Libra Affect Bitcoin Price and Facebook Stock Price?
Facebook’s Libra cryptocurrency has dominated news cycles ever since it was announced. Now it has caught the attention of senators as well. The Senate Banking Committee intends to hold a public hearing about Facebook’s cryptocurrency on July 16. The hearing will be titled “Examining Facebook’s Proposed Digital Currency and Data Privacy Considerations”. No witnesses have been announced, as yet. According to reports, members of … Continue reading Senate Banking Committee To Hold July Hearing On Facebook’s Libra
Now that the dust has settled on Facebook’s Libra announcement, it is time to take stock. The Menlo Park-based company’s move into blockchain has received an enthusiastic welcome from the crypto community. , which has lurched from one scandal to another in recent times. That is understandable. Much to the chagrin of its proponents, the crypto ecosystem and blockchain have become a subject of derision … Continue reading Four Problems With Facebook’s Libra Crypto
This morning, Facebook released details regarding Libra – its proposed cryptocurrency. The details and Facebook’s move have predictably generated much debate and discussion. While cryptocurrency enthusiasts and investors have applauded the move, regulators have alternated between adopting a wait-and-see approach and criticism of the social media company’s move. Expectations have been sky high for Facebook’s entry into cryptocurrencies. The social media behemoth is arguably the … Continue reading Enthusiasm, Snarky Criticism, Wariness: Reaction to Facebook’s Libra