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EU Does Not Know What To Do With Facebook’s Libra Coin

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Governments around the world are facing a lot of hard choices when it comes to cryptocurrency. The latest cryptocurrencies news are showing rumors that even the European Union – EU does not know what to do with the upcoming stablecoin by Facebook, Libra.

The main decision is whether governments should overregulate it and risk losing the benefits to the economy – or do nothing and make themselves vulnerable to those who step up. Right now, the European Union cannot figure out what to do about Libra.

A February 19 memo released by the Executive Vice President Dombrovskis on behalf of the European Commission shows that the Libra Association has fallen short in its responses to questions from the EU. As a result of that, any information provided by Facebook “remains insufficient for determining the precise nature of Libra and, by extension, its relation with existing EU law.”

Still, Dombrovskis also stated that the Commission are “willing to act swiftly” when it comes to harnessing the potential of crypto by arranging some regulations and oversight. Such a position reaffirms their December 5 declaration to police stablecoins and the monitoring of risk to financial stability of the region.

While EU does not know what to do with this coin, the Libra news show that the Facebook CEO Mark Zuckerberg spoke before a US House of Representatives Financial Services Committee on October 13. Lawmakers echoed similar concerns as the European Commission, citing vague answers that Zuckerberg provided regarding the digital currency. They said:

“I actually don’t know if Libra is going to work.”

Government bodies in the United States and EU are right now working on better understanding crypto. Meanwhile, 2020 is proving to be a great time for cryptocurrencies not only because of their surge but also because of their acceptance.

As all of this is happening, the Commission launched an open public consultation which will be available until March 19th, while the Internal Revenue Service (IRS) in the United States is preparing for a cryptocurrency summit which is expected to take place on March 3rd this year.

All in all, Libra is creating problems for regulators and no one knows how its future will unfold. From a regulatory perspective, Libra is not the only stablecoin but is certainly one which could become the most popular one.

DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at editor@dcforecasts.com

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Libra Project Announced Alliance With Rival CELO Stablecoin

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The Libra Project announced a new alliance with a rival stablecoin known as Celo. All of the members that have joined Celo Alliance, include Coinbase Ventures, Bison Trails, Anchorage Mercy Corps and other big shots from the crypto and traditional finances industry. Let’s find out more about this partnership in the following libra coin news. Back in October, the Libra Association got a major hit when five of the biggest backers – Visa, PayPal, Stripe, Mastercard and eBay departed the platform. They were concerned about the reputation and claimed that The Libra Project exaggerated the openness of regulation of the project. However, Libra claimed that the withdrawal of the companies will not have an impact while the regulatory setbacks could become even worse for Libra. Celo, on the other hand, is a non-profit organization that aims for financial inclusion for all the people across the world, by developing an open-source financial ecosystem. The goal is to create a CELO Blockchain, stablecoin, and other financial tools and services. The blockchain is proof of stake which is similar to Ethereum in many ways and even takes advantage of the functionalities of a smart contract. Both Celo and Libra want to create financial inclusion to billions of people with the use of Blockchain technology and combining these two projects, Celo will reach a better position to launch the network since Libra is facing multiple legal hurdles. The two projects have similarities and they want to have a token linked to a basket of different fiat currencies. Both of the projects have to create a camp incubator but let’s see what sets them apart. One major difference is its reach. Facebook’s Libra was exciting because of the exposure of social media and the relation with 2 billion people that use the service. Celo claims that they will reach 400 million people. The approach is quite different as well. Facebook is a private company that wants to create a centralized platform and its own stabelcoin. Celo is an open-source project that is run by a non-profit organization and it cannot face the same regulatory barriers as Libra did. The Libra Project announced the alliance and both of the platforms now share the same goals and strategy. However, Celo’s financial ecosystem provides more transparency and is more in line with the crypto ethos.
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Ex-CFTC Chairman: Libra Could Help In Prioritizing The Digital Dollar

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The ex-CFTC chairman Christopher Giancarlo wrote an article for the Wall Street Journal that said now is a good chance to start considering a digital US dollar which will be based on the blockchain system, as we are reading in the Libra news today. Giancarlo proposed the idea of making the US dollar digital with the help of the blockchain-based system and gained a lot of attention from the community. Giancarlo publicly proposed the idea last year and now, the digital dollar project has gone under many modifications especially in the past few months. One of the few companies to partner up and aim for central bank digital currency is Accenture. However, there were many reports that the central banking institution in the US could not give the green light for this asset to be developed and released to the public. Speaking in an interview recently, the EX-CFTC chairman made the claim that the institutions should come up with ideas such as Facebook’s Libra and the Chinese Digital currency which only proves the fact that the US should consider the facts that will make a decent digital dollar project and a priority to the nation. Giancarlo even suggested that the current financial structure is being overwhelmed and added that the government has to come up with better ideas that would see the currency system improved about ten times, in a manner never seen before:
 “We need to look at the architecture of our fiat currency. A lot of what’s being developed today commercially are workarounds for the lack of digital infrastructure for our own fiat currency.”
However, Once Mastercard left Libra, the company started investigating the potential use of the project. Banga appeared to have concerns when association members would also not firmly commit to the controls of data management including the know-your-customer (KYC) and anti-money laundering (AML) legislation. Visa, on the other hand, had pulled out because the project had not been able to “satisfy all requisite regulatory expectations” as a spokesperson later confirmed. Out of the 28 founding members of the Libra project, eight have left. The British telecom conglomerate Vodafone was the last leaving in January 2020 when it decided to focus on its own digital payments service.
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Libra To Offer More Inclusive Features In Its Calibra Wallet

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Facebook may be considering to modify some of its plans for the 2020 release of its stablecoin - and is planning Libra to offer a more inclusive cryptocurrency wallet as the latest cryptonews show. When the social media giant first introduced Libra last year, it did that by claiming the top cryptocurrency would be a simple global currency with the power to transform the global economy. The regulators quickly took notice and found that the company had to offer more questions as to what this digital currency would actually be. Now, the Libra news show that the stablecoin is still in development but going forward. As such, Facebook will now offer government issued currencies such as dollars and euros to support its own token. This move appears to be a way to appease reluctant regulators as well as gain additional support for the plan which is still scheduled for a Q4 rollout. A report from March 3 by Bloomberg predicts Libra to offer a more inclusive wallet which will support both crypto and state-issued currencies. The Calibra wallet (as its original name is) will be scaling back the features of the cryptocurrency. Calibra will now allow users to send and receive money - now in fiat currency - and make purchases. For those of you who don't know, almost two billion people around the world use Facebook. Expanding the basket by including central bank currencies makes it possible for anyone to use Calibra as a more traditional payment system. Any user with Messenger or WhatsApp installed on their mobile device could send and receive funds with the tap of a button. Now that Facebook sees Libra to offer a more inclusive wallet, many see this as a way to bypass the global financial system entirely. While the plan was ambitious, it left lawmakers and regulators questioning the risks of introducing the cryptocurrency to the market with so many unanswered questions. Now, one of the silver linings for Libra's rocky start may be the response of central banks in learning to accept digital currencies and stablecoins as the new reality. Since the project was announced, several countries (including Japan, China and England) explored minting a cryptocurrency.
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Major NY Broker Tagomi To Join Libra Association

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A new partnership is in the horizon in the Libra news where Tagomi, a crypto prime and major NY broker will join the Libra Association, the governing body behind the Facebook-led stablecoin. Tagomi was founded by Jennifer Campbell in 2018 in New York - she is a former associate at Union Square Ventures. The Libra news also show that Tagomi will become the 22nd member of the Libra Association. As you probably know, Members are expected to contribute at least $10 million to the Libra Reserve, which holds the assets that back the cryptocurrency. Meanwhile, the major NY broker Tagomi has raised $28 million to date, making a $10 million commitment a large amount for a startup that is just two years old. It should be noted that some of the biggest names in crypto are listed as clients on the company's website. Galaxy Digital, Pantera and Electric Capital are amongst others. Right now, Tagomi has a simple value proposition listed on its website. It says "Executing large orders of digital assets is really hard. Tagomi makes it simple.” Moreover, Tagomi is holding one of the highly coveted BitLicenses which are issued by the New York State Department of Financial Services, allowing it to serve New York residents. The Libra Association itself has been in the news lately for all the wrong reasons. Many of the original backers are abandoning the project and fearing regulatory pressure coming from the US government. This list of deserters includes Vodafone, Visa, Mastercard, Stripe, PayPal and eBay. As for the major NY broker Tagomi, a Facebook backed stablecoin could be a useful tool that would diminish the need for a fiat gateway. All in all, Libra is ramping up its list of partners. Despite the quitting of previous partners such as Mastercard and PayPal, the company is still operating and wanting to get more partners before its expected launch. Libra has always been a hot topic in the altcoin news and there is a clear reason why it is one of the most anticipated cryptocurrencies out there. Meanwhile, the market cap today shows that billions were lost as Bitcoin went to $8,800 and almost erased its February gains. Traders are cautious about investing in altcoins, too.  
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