Utermann believed that a direct ban was actually preferable and he said to the regulators that they should outlaw cryptocurrencies by saying:
“I am personally surprised that regulators haven’t stepped in harder.”
He was especially addressing the head of Britain’s Financial Conduct Authority Andrew Bailey who was sitting right next to him at the panel discussion. Bailey noted that Utermann’s opinions were ‘’quite strong’’ but he did agree that cryptocurrencies don’t have intrinsic value. Bailey made sure that the FCA is watching closely and that they have the initial coin offering sector under surveillance.
Utermann’s stance doesn’t leave any room for negotiation but some of his colleagues at Allianz are more optimistic about the use of blockchain technology. The chief economist at Allianz Mohamed El-Erian said that he also doesn’t believe that cryptocurrency will ever be able to replace fiat money but they will become more widespread. He said:
“Cryptocurrencies will exist. They will become more and more widespread, but they will be part of an ecosystem. They will not be dominant, as some of the early adopters believed them to be.”
El-Erian explained that crypto is not dead and the technology isn’t dead also. He is sure that we are about to see more widespread adoption by the private sector but also from the public one. El-Erian concluded that the last year’s frenzy was ‘’unwarranted’’.
Bear Euphoria Continues As Bitcoin Plummets Below $10,000
“Bull market corrections are unavoidable and should be welcome. Assets that go too far up too fast tend to crash the hardest. As everyone who speculated with the price of bitcoin during 2017 and 2018 well knows.”We can also see the Bitcoin hater Nouriel Roubini who is featured on many best cryptocurrency news sites for his pessimistic statement towards BTC and optimistic towards the Trump-Congress hearings. He said:
“Bitcoin has crashed by almost 30% in the last week and over 15% in the last day. As Congress, Mnuchin, Trump and myself point out that the criminal scams of crypto shitcoins-land will be cracked down on, the scammers and criminals know their days of unregulated casinos are gone!”As a reminder, the bear euphoria has made BTC correct more than eight times during the previous bull run - and Bitcoin lost more than 30% in the same period before reaching the all time high close to $20,000 at the end of 2017.
Privacy And Trust Issues: Libra Hearing Continues In US Senate
The ongoing hearing of Facebook's Libra cryptocurrency project with the Banking Committee of the United States Senate is continuing. The latest cryptocurrency news show that the US lawmakers and senators are mostly concerned about Libra's privacy and trust issues.
This is the main interrogation subject from them. As many best cryptocurrency news sites reported recently, the head of Facebook's crypto wallet Calibra is stressing the project's trust and regulatory compliance - but the regulators are not convinced.
For instance, Senator Jon Tester asked about Libra's privacy and trust issues. He questioned if Libra is able to make assurances against fraudulent purchases or loss of funds, along the line of credit cards or the Federal Deposit Insurance Corporation. As David Marcus from Calibra responded, “we will do our best to resolve those types of issues and claims as quickly as possible.” Tester stated that “it is critical that that is resolved before it goes live.”
Another US Senator jumped in the altcoin news. Sherrod Brown of Ohio took a more critical stance towards the project and asked "do you really think people should trust Facebook with their hard-earned money?" Marcus said that Facebook “will have no special privilege,” at which point Brown interrupted: “Mr. Marcus, you know better than that.”
Brown also addressed the privacy and trust issues and asked Marcus if there is anything elected leaders can say that will convince Marcus and the company to not launch Libra. Marcus responded:
“If our country fails to act, we could soon see a digital currency controlled by others whose values differ radically from ours.”
When the chair of the Committee Mike Crapo asked Marcus why the Libra Corporation had chosen to register in Switzerland, Marcus said that they would also register with US regulators. He pointed out that social and financial data would be entirely separate on the Calibra Network and added "in order to earn people's trust, we will have to have the highest standards in terms of privacy."
Aside from the privacy and trust issues, the Senator and presidential candidate Elizabeth Warren (known as a big cryptocurrency critic) also jumped in the coming altcoin news and asked about Facebook's willingness to allow data portability. She asked:
“If a Facebook user wishes to use a wallet other than Calibra, will you make it easy to allow the export of other data?”
In response to this, Marcus answered "absolutely, Senator." She then followed up by asking for the same commitment for messaging apps WhatsApp and Messenger, on which Marcus hedged too.
The official hearing on Libra with the US House of Financial Services Committee is scheduled for July 17, 2019.
Analyst Rips Libra Saying It’s The Worst Product In The World Ever
JPMorgan Chief Throws Massive Shade On Facebook’s Libra
“To put it in perspective, we’ve been talking about blockchain for seven years and very little has happened. We’re going to be talking about Libra three years from now. I wouldn’t spend too much time on it.”It might be worth taking the word of the JPMorgan Chief with a little bit of doubt. After all, JPMorgan is launching its own cryptocurrency so the bank aims to deploy the asset which is the JPM Coin on a privately managed Ethereum-based blockchain. While Dimon’s comment that ‘’we’ve been talking about blockchain for seven years and very little has happened’’ it is true that as far as the adoption is concerned it is still tempting to see a subtle blow at Bitcoin like this one. As noted in the altcoin news previously, the major cryptocurrency experienced massive growth over the seven-year period and overall in its decade-long lifespan. When it comes to it price, in 2012 it was below $15 and now it is reaching new high levels every day. At Least, Dimon does not believe anymore that Bitcoin is an outright scam as he did a while ago. He noted that cryptocurrencies are a scam and are not good security-wise and many people will lose their investments.
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