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January 2011

Libra Labeled a ‘Monetary Threat’ By Senior US Bank Executives

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Libra

Libra

Libra, the underfire planned cryptocurrency from Facebook (NASDAQ:FB), has been described as a monetary threat by senior US bank executives in a meeting with the Federal Reserve.

 Senior Bank Execs Opposed to Libra

Libra has been heavily scrutinized by regulatory bodies and financial institutions across the globe since it was first announced back in June and has been dealt a further blow following a meeting of the Federal Advisory Council this month. Members of the council include M&T Bank CEO Rene Jones, KeyCorp’s Beth Mooney, and Brian Moynihan, CEO of Bank of America.

“Facebook is potentially creating a digital monetary ecosystem outside of sanctioned financial markets — or a ‘shadow banking’ system […] As consumers adopt Libra, more deposits could migrate onto the platform, effectively reducing liquidity, and that disintermediation may further expand into loan and investment services,” banks said, according to the minutes of the council meeting obtained by Bloomberg.

Further Scrutiny from Lawmakers

These concerns were reiterated by two US lawmakers, Rep. French Hill (R-Ark.) and Rep. Bill Foster (D-Ill.), in a letter to the Fed’s chairman Jerome Powell. “The Facebook/Libra proposal, if implemented, could remove important aspects of financial governance outside of U.S. jurisdiction,” wrote Hill. The same letter also discussed the development of a digital dollar and enquired as to what legal, regulatory, or national security issues might prevent the Fed from developing a digital currency.

>> BitPay to Include Support for XRP This Year: What to Expect

Major Backer Reconsidering Position

The Federal Advisory Council’s apprehension towards Libra is just one of a series of regulatory concerns leveled at the Facebook-led project, which has thrown into doubt whether the coin will ever actually be launched. Yesterday reports emerged that Visa (NYSE:V) and Mastercard (NYSE:MA) were reconsidering their backing of Libra. Visa’s CEO Alfred Kelly stated that although the company had signed a letter of intent with the Libra Association, the company was not a member of anything and would not sign up until the association produced proof of compliance.

Last week, Mark Zuckerberg refused to confirm whether Libra would be launched as planned in 2020, creating further doubt as to whether the coin will ever see the light of day.

Featured Image: DepositPhotos © poringdown@gmail.com

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Bitcoin Survey Shows Major Distrust Abounds for Facebook’s Libra

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Bitcoin Survey

Bitcoin Survey

A new Bitcoin survey asking US citizens about Facebook’s (NASDAQ:FB) new Libra stablecoin has yielded some surprising results. When compared to leading cryptocurrencies, only 2% felt they would trust Libra more than Bitcoin.

The results may surprise traders and also raise questions about Facebook’s newest endeavor.

Bitcoin Survey

A poll of 1,799 US adults was carried out since Facebook launched its Libra white paper in mid-June. The most shocking result was that, as stated, an overwhelming majority of those asked said that when compared with Bitcoin, they don’t trust Facebook’s Libra coin.

Only 2% trusted Libra more than Bitcoin; the rest of those asked trusted Bitcoin more and/or were indifferent in their choice.

Bitcoin Survey Shows Facebook has Damaged Trust

According to Coindesk, one of the concerns surrounding Libra is Facebook’s poor track record on preserving user privacy. Of those asked, 77% said they did not trust the firm with their data at all, citing incidences such as the Cambridge Analytica scandal.

Further, the group showed a huge disinterest in the Libra project altogether. A massive 86% said they weren’t interested in Facebook’s cryptocurrency and wallet when asked about them, with only 5% expressing interest.

Age also played an important role in the results. Libra resonates better with the younger generation; those between the ages 18–30 were the keenest on using Libra. However, of those aged 65 years and up, only 7% had any interest in Libra.

The survey was run by consumer insights provider CivicScience. The group said it needed more research to clearly identify why there are high levels of mistrust towards Libra.

The Bitcoin survey should be taken with a pinch of salt as many of those asked don’t actually own or trade in cryptocurrencies. Only 10% of the group asked had actually bought cryptocurrencies.

>> Tether (USDT) Surpasses Bitcoin for Exchange Activity

So Few People Trade Crypto

In a separate survey, the same body found that of more than 2,100 US adults when asked in July, 79% of those asked have heard of Bitcoin and cryptocurrencies in general. But again, only 6% of this group had actually invested in cryptocurrencies, and only half of those liked trading in the digital assets.

What are your thoughts about this Bitcoin survey? Are you shocked to see how few people actually trust Libra? Do you think its a worrying sign for Bitcoin adoption that so few asked actually trade in cryptocurrencies?

Let us know your thoughts!

Featured Image: DepositPhotos © peshkova

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Binance.US will Officially Launch Trading Tomorrow

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Binance

Binance

Binance.US, the American branch of the world’s largest crypto exchange, will officially begin trading tomorrow, September 24.

The exchange will list seven cryptocurrencies upon launch, including Bitcoin (BTC), Binance Coin (BNB), Ethereum (ETH), XRP, Bitcoin Cash (BCH), Litecoin (LTC), and Tether (USDT). Five more coins will be accepted at a later date, including Ethereum Classic (ETC) and Stellar (XLM). To encourage user uptake, Binance will offer commission-free transactions until the beginning of November, and trades in large-cap coins, such as Bitcoin, will remain free afterward.

We believe we are just at the beginning of crypto adoption globally. There is room to grow for every organization in this space, and the industry will continue to get bigger in every country around the world,” explained Changpeng Zhao, CEO of Binance, to Decrypt today. Last week, Binance.US opened for registration and began accepting deposits; however, the exchange is not available in 13 states, including New York, Texas, and Washington, reportedly as a result of concessions made to state regulators.

The original version of Binance had technically always been available to users in the US through a VPN, although it had never been officially approved by regulators. In June, the company made the decision to revoke access to its American users with the intention of relaunching the platform with full regulatory approval. The US branch of Binance had made conciliatory movements with regulatory bodies, including registering its holding company, BAM Trading, with the Treasury’s Financial Crimes Enforcement Network.

>> IBM is Interested in Working on Facebook’s Libra Crypto

“In the US, where deep experience in interacting with local regulators is required, we are confident that licensing our technologies to Binance.US will allow compliant development. Our local partner Binance.US will help to navigate the unique regulatory landscape in the US, and at the same time work with the industry players there to help grow the overall market,” Zhao explained on Telegram.

Featured Image: DepositPhotos © Grey82

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Cosmos (ATOM) Soars 55% This Week

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Cosmos

Cosmos

Cosmos (ATOM) is the biggest mover in the crypto space over the past week amid growing optimism. Let’s analyze the key reasons.

Key Drivers

The Bitcoin rally that fired up the crypto space over the course of the first six months of the year may have slowed down considerably, but there are many other tokens that are making rapid gains in the market. One of those cryptocurrencies that has been making impressive gains over recent days is Cosmos (ATOM).

The token has had a superb week and rallied by as much as 55% when compared to its previous week’s performance.

Today, the cryptocurrency added another 12% to its market price and while there might be a lot of optimism due to the recent price action, there are other factors that need to be taken into consideration as well.

Analysts believe that while it is true that ATOM has made impressive gains recently, the selling pressure is also eating away at whatever gains the token is making. In other words, without the considerable selling pressure, the gains could have gone much higher, and there lies the possibility of a large selloff that could eventually dent the price considerably. During the period in which ATOM continued to rise, many other altcoins in the crypto sphere either recorded losses or remained flat. It remains to be seen whether the coin can manage to hold on to the gains or rise further in the coming days.

>> Crypto M&A Picks Up Momentum in Asia and Europe, Says PwC

The Cosmos project got the blessing of Binance at the time of its listing and the ATOM token listed without having to pay anything to the exchange. That being said, much of the trading that is currently leading to the appreciation in the price of the token is going in other exchanges.

The two exchanges that have been particularly active in ATOM trades have been Bibox and Hotbit. Plenty of Cosmos bears believe that the coin is overpriced and continue to highlight the risks of holding on in expectation of higher prices.

Featured image: DepositPhotos © fazon1

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