Libra’s Christian Catalini, the project’s co-creator and head economist of Calibra, explained that the central banks should see the crypto project as an improvement to their cryptocurrencies since Libra can be used to build on top of the central bank digital currencies. Let’s read further in the Libra news.
Catalini pointed out during a FinTech conference in Singapore how the central banks can benefit from Libra. the statement comes at a time when countries around the world are really looking forward to launching their own state-backed digital currencies. Libra’s Christian Catalini stated that Libra could not only co-exist with the new central bank digital currencies launched by the major central banks but it could also help them built on top of the project:
“From the start, it was clear to us that eventually, central banks will be issuing some flavors of central bank digital currency, and we wanted the system to be future-proofed for that. In fact, Libra would have built on those central bank digital currencies.”
During his speech, Catalini pointed out the concerns regarding Libra’s backing and he said that the cryptocurrency reserve represents a complement to the monetary policies so that assets behind it are controlled, managed and generated by central banks. Libra was the first officially introduced back in June and spiked mixed reactions around the world. the project gathered some serious regulatory attention with the legislators across the world battling to take a serious stance on the matter. It is also interesting that the draft document from the European Union implies the creation of the new coins that could compete with Libra or in other words, state-backed cryptocurrencies are starting to get more attention.
Another example comes from China as well since earlier this year it was announced that the central bank will launch a state-backed cryptocurrency that will be dispersed to central major institutions and corporations in the country. The Vice-chairman of the China Center for International Economic exchanges pointed out that their product will be the first market mover. The head of the people’s bank of China digital currency research institute reassured:
“We know the demand from the general public Is to keep anonymity by using paper money and coins […] we will give those people who demand it anonymity in their transactions. But at the same time, we will keep the balance between the “controllable” anonymity and anti-money laundering, Counter-terrorist financing, and also tax issues, online gambling, and any electronic criminal activities.’’
Galaxy Digital Blames Libra For $68 Million Loss In Q3
“Whether one points to Trading’s OTC market share gains and entry into the structured and derivative product markets, Asset Management’s launch of the new bitcoin funds, Advisory Services’ successful work on two IPOs on the NYSE and Nasdaq, or our Venture and Principal Investment teams’ continued and acute focus on portfolio management and positioning, the second half of 2019 has seen the company leverage our relationships and insights to improve our standing in the digital assets, cryptocurrency and blockchain technology industry.”Galaxy trashed Facebook's crypto project Libra suggesting that the stablecoin’s influence on the market sentiment damaged the entire investment ecosystem and even reduced the market activity. Mike Novogratz believes that this could be attributed to several factors including a geopolitical and regulatory uncertainty stemming from Libra as it was reported for months before.
US Lawmakers Want To Classify Stablecoins As Securities Including Libra
“Managed stablecoins, such as the proposed Libra, are clearly securities under existing law. This legislation simply clarifies the statute to remove any ambiguity.”The co-sponsor of the bill, Rep. Gooden, also explained the sentiment that the Congress will take the lead in shaping the legal landscape for all cryptos and the digital space overall. According to Gooden:
“It’s the responsibility of Congress to clarify the regulatory framework that will apply to stablecoins, especially now that mainstream institutions are offering them to consumers.”The Libra association commented on the proposed bill and Dante Disparte, the head of policy and communications noted:
“We maintain that responsible financial services innovation and regulatory oversight are not in contest. The Libra payment system is designed from the ground up to serve as a payment infrastructure that can empower billions of people left on the margins of today’s networks. The Libra Coin is simply a proxy for an instantaneous payment system that is low friction and high trust.”
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Libra Crumbles As Facebook Launches Its Alternative Payments Platform
“Facebook Pay is built on existing financial infrastructure and partnerships, and is separate from the Calibra wallet which will run on the Libra network,” the social media giant noted.Jake Chervinsky who is known as the General Consul at Compound Finance also had his say:
“Facebook Pay sounds an awful lot like an admission that Libra is dead in the water.”All of this confirms that Libra crumbles and Facebook is trying to get in the mind of its potential customers with new innovations. As the billionaire Zuckerberg and head of the company said, Libra is not the threat - China's proposed crypto yuan may do a lot more damage to global finances and dollar domination.
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