Author: off-road rabbit
Author: off-road rabbit
Recently, U.S. President Trump criticized Bitcoin and Libra in three consecutive tweets on Twitter. In the tweets, he stated that he did not agree with Bitcoin's digital gold status, and claimed that the value of cryptocurrencies is highly unstable. It is currently the only real currency in the country.
In fact, for Libra, the recent days are really not easy, and the voices of opposition are one after another. In addition to Trump's public criticism, Federal Reserve Chairman Jerome Powell also tweeted that Libra is not reliable. Coupled with recent hearings, Libra's situation is not optimistic.
Increasingly repressive regulation
Since Facebook announced the development of the new cryptocurrency Libra on June 18, 2019, Libra has experienced various suppressions.
From the previous U.S. House of Representatives subcommittee requesting Facebook to stop the development of Libra to the U.S. House of Representatives Finance Committee drafting the "Technology Giants Stay Away from Finance Bill" proposal, as well as criticism from various people, etc., all of which restrict the development of Libra.
Even the Federal Reserve Chairman Powell, who did not reject Libra at the beginning and claimed that he was not worried that cryptocurrencies would affect its implementation of monetary policy, has recently launched an attack on Libra, saying that he is working together to solve people's concerns about privacy, money laundering, and financial stability caused by Libra. All kinds of worries.
In addition, regulatory agencies in various countries have been closely watching the various trends of Libra and have launched many discussions. Most national agencies are holding a wait-and-see and cautious attitude towards the implementation of Libra. Of course, there are also more radical parts, such as the British FCA. He once bluntly stated that Libra will not be easily approved.
David Marcus, the person in charge of Facebook's blockchain project, also responded to this, saying that both the masses and the regulators' concerns about Libra will be resolved in the hearings in the past two days, and there is no need to panic.
Why is it criticized
It stands to reason that the development of cryptocurrency is not completely a new industry so far. It can even be said that there are many people who support the development of cryptocurrency. Although most countries have not explicitly supported its development, they have not cut it across the board. So why this time? Why did Facebook’s currency issue cause such a big stir?
In addition to the cliché concerns about money laundering, there are also protections for the status of legal currency and centralized rights. After all, when Facebook issued the currency, it said that it hoped to make Libra a global digital currency and planned to establish a digital currency with more than a dozen countries. The payment system is also linked to more than legal currency and national debt, allowing its huge 2 billion users to transfer money to each other and conduct online and offline consumption.
Although Marcus has repeatedly responded that only the central bank can formulate monetary policy, Libra will not compete with sovereign currencies and has no intention of entering the monetary policy arena. But having said that, regulators will not easily accept Libra’s risk supervision. In the final analysis, it is because Facebook’s influence is too strong, which is not difficult to see from the recent hearings.
Libra that may die
As a company with 2.7 billion users, its influence is far greater than imagined. In the eyes of regulatory associations in various countries, if there is no suppression now, the situation may not be as it is now when it develops out of control. It is like a "bomb" that will explode at any time. If you don't hold the remote control in your hands, you will definitely not feel at ease. This is why shortly after Libra came out, there was a proposal to "keep technology giants away from the financial bill".
More importantly, this "bomb" that could explode at any time has long since lost its reputation in various scandals, whether it was the previous Cambridge scandal that collected data on as many as 87 million users through a personality test app, Or being sued for violating fair housing laws, etc., people's trust in Facebook has long since disappeared.
But having said that, the attitude of Facebook this time is generally good. Long before this hearing, Marcu had publicly expressed his compromise attitude towards the supervision of various countries.
The focus of discussion at this hearing is still privacy and security, money laundering suspicions, and disrupting the original financial system. Regarding the above issues, Marcu said that Libra will not store any user's personal information data, and the public account address is not related to its real identity. , and will try to cooperate with global regulatory anti-money laundering activities.
The point is that Facebook's attitude in this hearing has been very good. Marcus even made it clear that he will not continue to launch the Libra digital cryptocurrency until Facebook fully resolves regulatory concerns and obtains proper approval. In other words, Facebook has no dominant power, and its death and development depend on the regulator's words.
Summarize
Summarize
In any case, what Libra is facing this time is not a small problem of development speed, but a life-and-death moment of whether it can continue to move forward. Even if the results of the hearing are completed, there is still a "tech giant away from the financial bill" behind it. Proposal, once the proposal is passed, Libra is equivalent to a real death.
