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’s proposed blockchain and cryptocurrency Libra is some time away from a formal launch but it is already generating an economy. CoinFLEX, a crypto futures exchange, has launched a futures contract that bets on whether Facebook’s futures contract will launch by December 30 next year or a settlement date. As is the case with all things crypto, a fancy term – Initial Futures Offering (IFO) … Continue reading CoinFLEX Launches Futures to Bet on Libra Launch Date
Call it the maturing of a teenager. Facebook, a 15-year-old company known to “move fast, break things”, is adopting a “more consultative approach” to Libra – its proposed crypto and blockchain, according to Mark Zuckerberg. In transcripts of internal meetings conducted in July, Zuckerberg discussed the current state of affairs for Libra and the company’s strategy to launch the blockchain. Regulators and lawmakers around the … Continue reading What Does Facebook CEO Mark Zuckerberg Think of Libra?
Will they or won’t they? Some partners in Facebook’s cryptocurrency and blockchain Libra are having second thoughts about the venture, according to two separate reports published in the Wall Street Journal and Bloomberg yesterday. Visa Inc., Mastercard, Stripe, and Paypal Holdings have already signed nonbinding letters of intent to join the Libra Association, a 28-member nonprofit responsible for governance on the blockchain. But they may … Continue reading Facebook’s Libra Partners Have Second Thoughts on Joining the Venture
Facebook has revealed the exact composition of reserves for Libra, its cryptocurrency, in response to a German politician’s query. Libra will be backed by a basket of currencies and government bonds to ensure low volatility in its price, thereby making it possible to use the coin for daily transactions. German publication Der Spiegel reports that Facebook revealed composition of the cryptocurrency in response to a … Continue reading Facebook Presses on With Libra Plans: Reveals Libra Reserves Composition and Acquires Chatbot
Representatives from Libra, Facebook’s proposed cryptocurrency and blockchain, and investment bank JP Morgan met officials from the Bank of International Settlements (BIS) in Switzerland today to discuss policy and regulatory issues relating to stablecoins. The meeting was part of an effort by the bank to understand stablecoins, cryptocurrencies whose price is pegged to that of fiat currencies or basket of goods. Numbers for such coins … Continue reading Facebook and JP Morgan Team Meets With BIS; Libra Chief Says Coin Will Not Threaten “Monetary Sovereignty”.
Unfazed by criticism about its intentions, Facebook’s Libra project plans to launch by the end of next year. Bertrand Perez, managing director of the Libra Association, told French magazine Les Echos that Libra would launch between the end of the first half next year and its end. He also offered other details about composition of the basket of currencies that comprise Libra. Specifically, he said … Continue reading Libra Will Launch By End of Next Year, Says Managing Director of Libra Association
France’s finance minister, one of the earliest critics of Facebook’s Libra, fired another warning shot at the cryptocurrency today. “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,” France’s Finance Minister Bruno Le Maire said at the OECD conference in Paris. The concerns … Continue reading We Cannot Authorize Development of Libra on European Soil: French Finance Minister
This is probably not the most auspicious of debuts for Libra, possibly the most high-profile project involving cryptocurrency and blockchain, on Facebook’s SEC filings. In its latest quarterly report, the social media behemoth admitted that the Libra project may never launch. The main reason cited by the company are various regulatory challenges, in the US and other countries around the world, faced by it. The … Continue reading Facebook Says Libra May Never Launch Due To Regulatory Scrutiny
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 has generated a media storm of commentary and analysis since it was released last month. In response, the Menlo Park-based company has mostly restricted itself to providing a drip feed of information about its workings. But a Senate and Congressional hearing over the next two days is expected to provide more details. The hearings are important because the implications of Facebook’s project span … Continue reading Why Facebook’s Libra Testimony Is Important
Facebook’s Libra coin has dominated cryptocurrency headlines since its announcement last month. Today was no exception. This afternoon Treasury Secretary Steven Mnuchin said it was a “national security issue” because it could be misused by money launderers and terrorist financiers. “Cryptocurrencies such as bitcoin have been exploited to support billions of dollars of illicit activity like cybercrime, tax evasion, extortion, ransomware, illicit drugs and human … Continue reading Treasury Secretary Steven Mnuchin Joins Critics Chorus for Facebook’s Libra
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
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