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IBM is Interested in Working on Facebook’s Libra Crypto

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Libra

Libra

The cryptocurrency space has been on an impressive run this year and one of the biggest developments this year was the announcement of Facebook’s Libra, the social media company’s very own crypto token. It goes without saying that it was a huge announcement and caused a lot of noise in the crypto sphere. As is well known, Facebook (NASDAQ:FB) is heading the Libra project, but the company is going to be helped by many other firms.

Key Development

Today, it has emerged that tech giant IBM (NYSE:IBM) is apparently open to the idea of working with Facebook on this particular project. Libra has caused quite a stir on a global level, but this is perhaps a positive development for the project.

One of IBM’s top executive spoke to CNBC today and stated that the company is open to the idea of working on the Libra project. The company’s general manager in charge of blockchain service, Jason Kelley, stated that IBM is looking for collaborations in the blockchain space.

He said, “Blockchain is a team sport. Our clients are ready to work with (Facebook) and we’re ready to work with all of them to bring it together.” Some of the biggest companies in the world have realized the importance of blockchain and are actively looking for ways to get into space quickly.

>> CME Group to Launch Bitcoin Options in Early 2020

However, it is important to keep in mind that Libra has experienced a massive backlash from policymakers, central banks, and regulators all over the world ever since Facebook made the announcement a few months back. Kelley stated that the entry of credible companies like Facebook brings much-needed legitimacy into the space and hence could, in fact, be a massive positive for the crypto space. The social media giant has reassured the relevant authorities that it is only going to launch Libra once all the regulatory hurdles have been cleared.

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Facebook’s GlobalCoin Could be Launching as Soon as Next Year

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GlobalCoin

GlobalCoin

There’s been a lot of information circulating that Facebook is moving into the crypto market. And while some of this information is outright false, other bits are true — at least, that’s what the sources say. Take today, for example. On Friday, BBC said Facebook (NASDAQ:FB) is going to roll out GlobalCoin next year in several countries.

Here’s everything we know.

Facebook’s GlobalCoin Hitting the Market Soon?

According to BBC, a London, UK-based broadcasting company, Facebook is planning to roll out its cryptocurrency “GlobalCoin” in 2020. The online media giant, according to the BBC report, will launch the crypto-based payments system in roughly 12 countries by Q1 2020. And while that might seem far away, BBC also said Facebook plans to commence trials by the end of 2019. That and Mark Zuckerberg’s company has also already gone to the U.S. Treasury for advice.

More details about GlobalCoin are expected to be announced in the coming months. And while the world does need these additional details — the influence Facebook has on the world is huge, so the possibility of the company moving into crypto is extremely significant — Facebook seems to already be benefiting from the BBC report. Well, maybe not benefitting, but at least FB stock didn’t plunge after the report on GlobalCoin came out.

According to Yahoo Finance, as of 3:44 PM EDT, FB stock is trading at $181.19; this puts FB stock up 0.18%.

Takeaway

As mentioned, Facebook launching its own cryptocurrency is massive. Companies like Facebook and Amazon are constantly moving into different sectors of the market successfully, and the launch of GlobalCoin in a dozen countries would be yet another example of this. 

What do you think, though? Should Facebook launch GlobalCoin? If so, which countries should gain access to the cryptocurrency?

Let us know what you think in the comments below, and don’t forget to follow along with this story in the coming months! 

Featured image: DepositPhotos 

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Facebook Officially Launches Libra Despite High-Profile Departures

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Libra

Libra

Libra, the highly-scrutinized planned cryptocurrency led by Facebook (NASDAQ:FB), officially launched in Geneva yesterday despite several high-profile defections from the project last week.

Libra Launches With 21 Chartered Members

The Libra Association, the non-profit governing body of the digital currency, officially signed on 21 charter members at a meeting at its Swiss headquarters. The association was originally made up of 27 members; however, the high level of regulatory scrutiny leveled at the project led to several prominent defections in recent weeks. These include Visa (NYSE:V), PayPal (NASDAQ:PYPL), and Mastercard (NYSE:MA), which all jumped ship last week as it emerged that Mark Zuckerberg would defend his plans to launch Libra before a Congressional committee.

Libra also named its board of directors and formalized the association’s executive team in Geneva. David Marcus, Calibra CEO and former head of Facebook’s blockchain activities, will take a seat on the five-person board. Joining him will be Katie Haun, a general partner with Andreessen Horowitz; Wences Cesares, CEO of Xapo; Patrick Ellis, general counsel at PayU; and Matthew Davie, chief strategy officer of Kiva. Notable companies making up the 21 chartered members include Spotify, Uber, Vodafone, and several prominent investment firms.

High-Profile Defections

Despite the high-profile defections and intense regulatory resistance to the project, The Libra Association has said that more than 1,500 entities have expressed an interest in signing up, with 180 of them meeting the requirements to do so. In order for new members to join the association, a two-thirds vote is required by the current group of 21. The Libra Association was initially meant to consist of 100 companies; however, no further update on that figure has been provided, nor has an official launch date.

>> NASDAQ Launches AI-Powered CIX100 Crypto Index

Regulatory Resistance

Should Libra ever come to fruition, it will be a stablecoin backed by a basket of fiat currencies including the US dollar (50%), the euro (18%), the yen (14%), the British pound (11%), and the Singapore dollar (7%). However, regulators on both sides of the Atlantic have been highly opposed to the plans, with France’s finance minister saying he will block any attempts to develop the coin in Europe, while members of the Federal Advisory Council in the US described the project as a “monetary threat.”

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Back to the Basics | Can Stablecoins Save Crypto’s Soul?

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stablecoins

stablecoins

When the perpetually mysterious Satoshi Nakamoto, founder of Bitcoin, set out to build his own cryptocurrency, it’s fair to assume that he didn’t foresee where his creation would be just 10 years down the line.

This isn’t to say that the enigmatic developer didn’t have big plans for Bitcoin. After all, the aim of the digital currency was to ultimately overthrow the financial sector of the time. Instead, it became a capitalist dream—hurtling towards market values of almost $20,000 at its peak, before caving in on itself over the twelve months that followed.

Astoundingly, considering the unprecedented connectivity that we enjoy today, Satoshi Nakamoto has never been officially identified following the rise of his creation. Considering that he is rumored to own around 1 million Bitcoins that haven’t been touched—even during the cryptocurrency’s highest peaks—this has led to some investors to claim that Nakamoto died after founding his digital currency.

It would be quite something to hear Nakamoto’s thoughts on the ecosystem that he created. In the early days of Bitcoin, some adopters were keen to get the cryptocurrency up and running as a viable payment alternative—with some hip fast food places accepting the coin and a few businesses offering to pay salaries in Bitcoin.

Cryptocurrency startups established themselves in a bid to support transactions through Bitcoin. BitPay could’ve paved the way for the currency to be used to buy groceries or cinema tickets, but adoption wasn’t widespread enough to bring viability and Bitcoin began to mutate.

Last year, The Next Web found that 44% of all Bitcoin transactions are for illegal activities. Users found that Bitcoin was an ideal and untraceable currency for use on the dark web.

Writing for The Outline, Adrianne Jeffries said, “Nakamoto was a libertarian who wanted to create a system for payments that would circumvent governments, bankers, and corporations.”

He continued, “Instead, Bitcoin is now a get-rich-quick scheme that retains none of the exciting, anarchist features it proposed and has created a secondary economy with financial shenanigans that mirror the ones that led to the global financial crisis.”

It would be hard to classify Bitcoin as a failure, but it’s fair to say that the cryptocurrency has lost the soul it had as an emerging financial alternative off the back of 2008’s devastating financial crash.

There is, however, hope for the soul of the crypto-ecosystem as a whole.

2020 promises to be one of the biggest years for the world of cryptocurrencies. Stablecoins aren’t exactly new, but with the anticipated arrival of Facebook’s Libra and Wells Fargo Digital Cash, the volatility-free industry of stablecoins looks set to take centre stage.

Stability in the Face of Volatility

In December 2017, Bitcoin reached a value of almost $20,000; one year on it had dwindled to nearly $3,000.

As a digital currency that was designed to operate as a reliable alternate payment system, the success of the Bitcoin bull run in 2017 rendered the cryptocurrency unfit for its intended purpose.

>> Ripple Transfers XRP to New Trading Address: Bad News for Crypto?

Stablecoins, however, are pegged to real-world assets like the US Dollar or gold. Because of this, there aren’t any meteoric rises in value, but no crippling drops either.

Ethically speaking, stablecoins will be free from the clutches of speculators and profit-turning investors, leaving the digital coins to operate as they should—as a universal currency that can be used seamlessly beyond borders.

Practical Application

Stablecoins like Wells Fargo Digital CashTimvi (TMV), and Tether have been designed with convenience in mind.

When Wells Fargo announced its own digital stablecoin, the banking giants did so with an eye firmly fixed on enabling easy transactions. Lisa Frazier, head of the Innovation Group at Wells Fargo, boldly predicted that Digital Cash will be “faster than SWIFT, cheaper and definitely more efficient.”

Wells Fargo Digital Cash uses R3’s Corda Enterprise software to leverage swift book transfers internally—enabling funds to move seamlessly from a payer’s account to a payee’s account within the bank.

The true pace of Digital Cash remains to be seen, but if it is indeed faster than SWIFT, then it represents a step in the right direction towards utilizing crypto payments for everyday activities—like buying a coffee on the way to work.

Reaching the Unbanked

When Facebook announced Libra, its stablecoin that’s due to be released in 2020, it was done so from a humanitarian perspective.

Libra has been developed with the aim of reaching out to the unbanked citizens of the world. “For many people around the world, even basic financial services are still out of reach: almost half of the adults in the world don’t have an active bank account, and those numbers are worse in developing countries and even worse for women,” wrote Facebook subsidiary Calibra in a recent company statement.

Facebook, along with 28 other founding members of The Libra Association, including Visa, Mastercard, PayPal, Uber, Lyft, and Coinbase, among others, will focus on developing a stable universal currency that’s designed to accommodate low-cost transactions across borders.

“The goal of this new project is to build a financial ecosystem that can plug in and empower billions of people,” explained Dante Disparte, head of policy and communications for the Libra Association.

It’s early days yet, but 2020 may well be a watershed moment for driving the world of cryptocurrencies away from the soulless Wild West period of late-2017 and 2018 and into a new era of inclusivity and innovation. Hope springs eternal.

This article was curated through CryptoCurrencyNews’ Contributor Program. If you would like to write for us, send us your submission!

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Facebook Wasting No Time Developing Recently Announced Libra Coin

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Libra coin

Libra coin

Last week, the world received highly anticipated news. After the story circulated through the media ranks for months, Facebook finally confirmed it. Yes, the social media giant has moved into the crypto market, rolling out a cryptocurrency called the Libra coin. While a new venture for the company, Facebook is wasting no time jumping in.

Here’s the latest happening with Facebook and the Libra coin.

Facebook’s Libra Coin Needs Data Engineers

This week, Facebook posted a job description indicating that it’s looking for a data engineer to work at Calibra wallet, which is an app in development for the Libra coin. Of course, this is not the first time Facebook has ventured out looking for new Calibra employes. Two days after unveiling the Libra coin, Facebook posted that it’s looking for a finance program manager for Calibra wallet.

Now, this news is significant for two reasons. In these job descriptions, Facebook hints at future plans for the Libra coin, the Calibra wallet, as well as its involvement in the banking and financial services industry.

“The wallet will be the delivery vehicle for many financial services starting with personal payments, but expanding to online and offline commerce and eventually lending and personal financial management.”

>> Bitcoin Price Crosses the $11K Mark for the First Time Since March 2018

The initial news of the Libra coin is significant as well, considering it has reignited the public’s interest in the industry, sending the Bitcoin price past $11,000 for the first time since March of last year. It has also sent FB stock into the green. At the time of writing, FB stock is trading at $192.96, which puts it up 0.96%.

Takeaway

What do you think about Facebook’s Libra coin? Were you surprised by last week’s revealing? Did you think the company would be moving as fast with the cryptocurrency as it appears to be from these job postings?

Let us know your thoughts in the comments below!

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The Libra Association Gets a New Member in Shopify

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Libra

Libra

The Libra Association has signed up Canadian e-commerce platform Shopify as its newest member as the troubled crypto project looks to get back on track.

Libra has lost several founding members in recent months for a variety of reasons, the most prominent of which was the massive amount of scrutiny leveled at the project. The association was originally made up of 27 founding members; however, several early backers such as Visa (NYSE:V), PayPal (NASDAQ:PYPL), and Mastercard (NYSE:MA) all jumped ship before the founding charter was signed, leaving just 21 members.

Vodafone was the most recent firm to quit The Libra Association, although for a different reason. The British telecom giant said it intends to dedicate resources previously allocated for the project to its own well-established digital payment service M-Pesa, which it plans to expand beyond the six African nations currently served.

In a rare piece of good news for Libra, Shopify said it is linking up with the venture to “work collectively to build a payment network that makes money easier to access and supports merchants and consumers everywhere.” The e-commerce platform has around 1 million businesses from 175 countries on its books and will join other Libra Association members in contributing at least US$10 million and operating a node that processes transactions for Libra, and will also leverage its expertise in managing payment networks.

>> Whale Transfers 31.30 Million Ripple (XRP) to Bitstamp

Following the news that Shopify would join the Libra Association, Libra’s head of policy and communications Dante Disparte said the group was “proud” to welcome its newest member and talked up the troubled initiative. “Shopify joins an active group of Libra Association members committed to achieving a safe, transparent, and consumer-friendly implementation of a global payment system that breaks down financial barriers for billions of people,” Disparte said.

Libra is slated to launch in June of this year despite the huge amount of pushback against the project.

Featured Image: DepositPhotos © poringdown@gmail.com

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PayPal Might Quit Facebook’s Libra Project

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PayPal

PayPal

When it comes to the payments space, there is no other company that has a reputation as big as that of PayPal (NASDAQ:PYPL). Hence, when it emerged that the payments giant was going to be a part of the Libra Association, there was a lot of anticipation about the sort of product Libra was going to be.

Key Details

However, according to the latest reports, it has emerged that PayPal is now considering pulling out of the Libra Association. The reason behind the decision is tied to the regulatory issues that have dogged Facebook’s (NASDAQ:FB) supposed cryptocurrency over the past months.

Ever since Facebook first announced that it was going to launch its own stablecoin named Libra in 2020, there has been a lot of regulatory backlash against it. While it is true that the company has stated that it will only launch Libra once all regulatory issues are cleared, it seems to have led to doubts among partners like PayPal. Facebook is not the only company that is going to work on Libra. The tech giant has brought together a wide range of other corporate giants into the Libra Association in order to create the cryptocurrency. PayPal is one of the key members of the association at this point.

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The Financial Times reported that a representative from PayPal did not attend the latest Libra Association meeting that took place on Thursday. Considering the troubles that Libra has faced over the past months, the withdrawal of one of the biggest payment companies in the world from the project is not going to be a good thing. Since Libra is going to be backed by fiat currencies, central banks have expressed fears about the crypto token destabilizing the markets.

Although the head of policy of the association, Dante Disparte, did not speak about PayPal specifically, he said that each corporation who has become part of the project must make its own assessment.

Featured image: DepositPhotos © Pixinooo

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Blockchain and Social Media | A Match Made in Heaven?

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social media

social media

Social media platforms of the new future will be very different from what we have today, that is if the current trends are to sustain. Social networking is not an old phenomenon. It has picked up in the last two decades. At the dawn of the internet, as it started to gain mainstream adoption in the early 90s, the only thing we could do was view information and send messages via email. Later on, as the decade progressed, online search started to become a big thing, and later microblogging caught on, albeit at a small scale.

Instead of just viewing information, the idea of sharing and forming platforms started to grow. America Online (AOL) could be viewed as heralding this era when it enabled the creation of member profiles that were searchable. Nonetheless, major strides in social networking were not made until after the dot com bubble burst in 2000. The new era of social networking sites began. Friendster was launched in 2002, then Myspace in 2003, LinkedIn also in 2003, and Facebook in 2004. Even Google launched Orkut, a social networking site, in 2004. It has since shut it down.

Facebook and Myspace became the two leading social networking sites until Facebook dominated. Facebook specifically did a few things differently from Myspace that worked—starting by targeting university students, understanding its core product value, etc.—and these things eventually allowed it to increase engagement and capitalize on ads.

Later came Twitter, YouTube, Instagram, and Snapchat—all with one core idea—giving a platform for people to share their daily life experiences. User-generated content became the main thing. To monetize the platforms, the only viable model was through allowing companies to place ads while people used the service for free. As people generated more content, engagement grew. As time went by, more customer data was being analyzed and tracked in order to give better ad placement than TV and other traditional platforms could offer.

This has been the dominant model for social media platforms, but major problems have arisen from this model.

Hacking and data leaks have been a huge problem, perhaps the most concerning. Facebook allows third-party developers to create applications that work on Facebook’s platform. Recently, we learned about how this has been abused, exposing users’ records, names, passwords, comments, etc. It started with the Cambridge Analytica scandal. LinkedIn also had a password breach.

Too many ads can lead to a bad customer experience. Many social media companies, in a bid to increase revenue, found more ways to customize ads. The length of time a person stays on a platform became the main metric, and all efforts have been done to increase staying time. The centralized control of social media companies means that they optimize for engagement and ease of use in order to make better targeting for advertisers. Sometimes this comes at the expense of users.

Even with increased staying time, the majority of the value generated accrues to the platforms themselves and not the users who are the creators of the content.

Fake accounts, spamming, and bots are also becoming a menace for current social media platforms. For example, Facebook recently said that in the first quarter of 2019, it had removed 2.2 billion fake accounts. That is a high figure, even though Facebook says it is able to flag fake accounts within minutes of registering. In addition, how to manage privacy in an ad-based model is still a challenge.

Finally, there’s online harassment and hate speech. This has always been a problem but has especially become so in the last few years. The only way a user can really deal with this is by reporting the account; beyond that, the jury is still out on how best to solve the issue of online harassment and hate speech.

>> Tether (USDT) Accidentally Creates $5 Billion in Crypto

It Started with Bitcoin

The launch of bitcoin in 2009 sought to change the way we view and use money. Satoshi outlined the vision of a decentralized, censorship-resistance internet-based money. Bitcoin has acted as a currency and medium of exchange, enabling borderless mechanisms to store and exchange value. The idea is to reduce centralized control and the single point of failure, which can be prone to manipulation and locks out many, especially those in countries with failing monetary regimes and a lack of ways to transfer value cheaply across national borders. This aspect of decentralized networks has caught on and is now being extended beyond money to other areas.

Ethereum later came in 2015, introducing the idea of a platform to build and launch decentralized applications. Hundreds of use cases have evolved from here: fundraising (ICOs), prediction markets, data storage, etc.

Social media is one of the use cases. As outlined above, some of the major challenges of existing social networks can be solved by decentralized networks if they work as envisioned.

  1. Reduce powerful corporations controlling huge chunks of data;
  2. Deal with problems of bots and fake accounts;
  3. Incentivize good behavior through tokens—this could reduce spamming/trolling;
  4. Enable contributors to earn based on the content they share;
  5. A payment system.

Let’s look at some of the existing projects trying to solve the problems currently plaguing social media.

Steemit

Steemit was an early blockchain startup that showcased how the technology could be used to benefit content creators. As a decentralized alternative to platforms like Reddit, users are able to create accounts and start posting content. When it becomes popular, they earn Steem tokens.

This way, spam content is eliminated. Users can exchange tokens with other cryptocurrencies or fiat on exchanges. Started in 2016, it has now amassed 1 million users. However, it has not yet achieved scale to rival any of the existing social media platforms.

Voice

Block.one, the company behind the EOS cryptocurrency, announced on the first anniversary of EOS mainnet on June 1, 2019, that it was launching a social media platform called Voice.

The information available from the launch says that the platform will seek to eliminate bots through a special authentication process when onboarding users. If successful, that would eliminate one of the main challenges of managing fake accounts and bots on traditional social media.

The Voice token will be at the center of the network whereby users receive Voice tokens based on the content they share and by collecting likes. The token cannot be obtained in any other way, such as mining, but only through the platform, and it can be spent promoting users’ own posts.

Facebook’s Libra

Even the existing social media platforms such as Facebook are realizing that this is not a passing façade.

Facebook first came out in support of blockchain in 2018 when its CEO said that they were looking into blockchain as possible solutions for their privacy woes. Later in December 2018, it has heavily been reported by various new platforms such as Bloomberg that, finally, Facebook is launching its own cryptocurrency, Libra. The announcement came on June 18, 2019. and Libra is expected in 2020.

Libra is to be in the form of a stablecoin for facilitating payments on Facebook’s platforms. According to the whitepaper, the project is a collaboration of 27 other partners which form the Libra Association; each partner contributes $10 towards the project and hosts a node. Facebook formed Calibra, which is to be Facebook’s own representative in the Libra Association. David Marcus, head of Calibra, says that members are expected to grow to 100 by the time the launch.

Libra is meant to facilitate payments across the world. Facebook would benefit by enabling its 2.2 billion users to have a way to make payments easily and cheaply. Further down the line, Libra could be used to enable users to pay for ads on the platform.

Nonetheless, Facebook has received a lot of backlash from lawmakers in both Washington and Europe. Reports also indicate that China could launch its own version to compete with Libra.

This is not the first time Facebook has experimented with digital tokens, having launched Facebook credits in 2009 to enable users to purchase items such as games on the site before terminating the project after it failed to gather traction. However, with the rise of cryptocurrency tokens, could this social media platform have now found a way?

>> John McAfee Reiterates His $1 Million by 2020 BTC Price Prediction

Telegram

Telegram, the messaging platform, is also building the TON, or Telegram Open Network, which will enable users to undertake e-commerce.

Telegram raised $1.7 billion in 2018, making it one of the biggest ICOs ever. In February this year, The Block reported that the project was 90% complete and would be launched in Q3 of 2019.

Telegram aims to launch GRAM, the native token powering the TON. To add to messaging, the TON is expected to enable payments via GRAM, a decentralized marketplace, and peer-to-peer file hosting as explained in its technical whitepaper. The project is speculated to be in testing mode currently, and more details will be availed when the project is fully launched later this year.

With 200 million monthly users already, the launch of TON could radically change messaging as Telegram is already one of the most widely used non-blockchain based messaging platforms, particularly for ICOs, mainly because of its privacy features. If TON is successful, this could solve the monetization challenge of the platform, since the founder Pavel Durov has publicly said that Telegram will never allow ads as a method of monetization.

From Now On

For the majority of the new and upcoming blockchain-based social media platforms, incentivizing good behavior, payment channels, and rewarding users for sharing content seems to be the core tenets of blockchain-influenced social media.

Until now, the only viable way to make money by being on social media as a user has been growing a following or fan base to high numbers, having some level of influence, and then endorsing or sponsoring products through which the user can earn a commission based on set metrics.

However, for the majority of the remaining users, there is no incentive not to troll, spam, and so forth. With tokens, the idea is to reward those who spend more on the platform, sharing updates, pictures, stories, and the like. Social media giants such as Facebook have come under pressure for generating billions of dollars in ad revenue based on content created by users while users do not benefit directly. Native platform tokens could unlock this problem. The extent to which this will work remains to be seen, but at the core, it challenges the fundamentals of how not only social media but also by extension, the internet has been built so far.

Privacy, payments, and control over data seem to be at the core of how the future of social media is going to work.

Time will tell.

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Libra Chief Praises Its Anti Money Laundering Standards

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Libra

Libra

Libra Chief David Marcus has claimed that the Anti Money Laundering Standards of the underfire project are superior to any other payment networks on the market today.

Libra Scrutiny Means Its On Track, Says Chief

Marcus is the CEO of Calibra, the corresponding digital wallet of Libra, and previously served as president of PayPal and a member of the Board of Directors at Coinbase. Speaking at the Money 20/20 conference in Las Vegas, he said, “I want to say that the efficacy of sanction enforcing can be much higher on Libra than other payments networks.” He pointed to the benefits of blockchain technology in enabling regulators to quickly identify risks in the system without having to rely on external reports.

Libra has been under fire from regulators in the US and Europe, who fear that it poses a threat to the economic sovereignty of nations. Speaking on that scrutiny, Marcus said, “These headlines are a preamble to more hard times ahead, and we must govern the network into a place where it will meet regulatory standards, then we will see the network come to life. People deserve much better than they have.” However, he added that the scrutiny was a sign that Libra was on the right track, saying the most meaningful innovations are always met with “damning headlines.”

The Libra Association

Despite the criticism, the Libra Association was officially launched earlier this month at its headquarters in Geneva. The Association’s charter was signed by 21 founding members, down from the original figure of 27 after several high profile defections, including Visa (NYSE:V), PayPal (NASDAQ:PYPL), and Mastercard (NYSE:MA), which all jumped ship after it was announced that Mark Zuckerberg would defend his plans to launch Libra before a Congressional committee.

>> Binance US to Include NEO and ATOM for Trading

At the launch, Libra announced its executive team, which will include Marcus as well as four other high profile figures in the digital payments industry. Katie Haun, a general partner with Andreessen Horowitz; Wences Cesares, CEO of Xapo; Patrick Ellis, general counsel at PayU; and Matthew Davie, chief strategy officer of Kiva, will complete the five-person board.

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Facebook in Discussions with CFTC but Uncertainties Continue

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GlobalCoin

GlobalCoin

Some weeks back, Facebook indicated that it was launching a cryptocurrency payment service called Project Libra. The company has had a series of talks with various e-commerce companies as well as financial firms seeking support for the payment service. The latest discussions involve the US Commodity and Futures Trading Commission regarding Facebook’s stable coin initiative: GlobalCoin.

CFTC Indicates Interest

The Financial Times reported on Sunday that Christopher Giancarlo, the chairman of CFTC, had confirmed that talks regarding the support for the stablecoin were in early stages. He added that the goal of the discussions is to confirm if the cryptocurrency will fall under the regulatory remit of CFTC. The chairman said that CFTC was interested in understanding the stablecoin better and that action could only be taken when there is an application. For now, however, no application has been made for GlobalCoin.

This news comes after the company was in discussions with US and UK government officials regarding the regulatory concerns and opportunities of Facebook’s GlobalCoin. Project Libra’s objective is to permit Facebook users across the world to transfer money.

>> BitMex Ventures Invests in PDAX, Increasing Activity in the Philippines

Too Early to Tell

Since the CFTC and Facebook are still in discussions as CFTC tries to understand the coin, the chairman indicated that it was still early to ascertain the possibility of GlobalCoin falling under the CFTC remit. However, Giancarlo indicated that if the stablecoin will get backing of the US dollar, then the possibility of it being tied to derivatives will be minimal. He further indicated that the main compliance issue by regulators will be how the company will implement and adhere to anti-money laundering and KYC measures.

Some people believe that Facebook’s GlobalCoin will be a game changer in the crypto industry, while some hold that it is such an expensive feat that won’t go far.

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