Libra seems to be the new cuss word in Washington D.C.
After unveiling Libra and setting up the association to oversee its governance in Switzerland, Facebook probably thought they’d be taking more flights across the Atlantic. However, it looks like the layover in the US Captial is longer than expected.
On July 16, David Marcus, lead of the Libra project and VP of Messaging Products at Facebook, sat before the US Senate Banking Committee to discuss Facebook’s cryptocurrency project, and it wasn’t pretty. Senators from both parties unified with pressing questions about the privacy, security, and global concerns associated with Libra.
This is certainly not the first rodeo for Facebook executives in front of US Congressmen. But, the way the latest hearing went, it certainly won’t be the last.
Senators likened Facebook’s plan of entering the payments realm to a toddler burning the house down, calling Libra a “delusional” goal, and revisiting Facebook’s privacy problems. Arson comments and snide remarks aside, there were genuine concerns that the wide reach of the social media giant, coupled with its entry into the payments realm via a digital asset, would be a sovereign problem and not a case of a private company merely expanding its operations.
Senator Sherrod Brown, who during the Fed Chairman’s appearance before the House Finance Committee on Libra mulled big tech’s efforts to rival big banks, questioned the trust customers had in Facebook after its previous debacles and PR disasters. He opened his address by stating, “Facebook is dangerous,” and called out the social media company.
“Do you really think people should trust Facebook with their hard-earned money?…I just think that is delusional.”
He spoke out against not just Facebook’s payment plans, but also its nefarious advertisement algorithm, its ability to betray journalistic principles and create a facade of news stories. Brown also spoke of the Menlo Park company “manipulating our emotions.” The business model of Facebook, according to Sen. Brown, is to ‘intensify hate’ by the dichotomy of connecting people and making a buck. In short, the motto of Facebook is “Move Fast and Break Thing.”
Senator Brown added,
“We’d be crazy to give them a chance to experiment with people’s bank accounts, to use powerful tools theydon’t understand like monetary policy to jeopardize hard-working Americans ability to provide for their family. This is a recipe for more corporate power over markets and consumers.”
Other Senators also reigned down on Marcus, visibly angry about last year’s privacy issues. Chairman of the Committee, Senator Mike Crapo, questioned the 2 billion strong “reach and influence” Facebook has, equating this to a global cause for concern. However, he appreciated Facebook’s endeavor to build a credit system that was cheaper and faster, despite criticizing the means.
The concept of cryptocurrencies coupled with a private company of Facebook’s reputation has made the Senators even more displeased. Senator Thom Tillis said that digital assets are still in the “wild wild west” phase due to a lack of regulations, while still maintaining that Libra could be a “good idea for us to explore.”
Other Senators including Senator Pat Toomey and Senator Mark Warner lauded the idea of blockchain-based payment system, adding that the regulatory backlash against Facebook and Project Libra was a bit “premature” and “misguided,” to some extent.
Throughout the accusations, Marcus maintained a pro-regulatory stance and added that Facebook would work with any governing body, both at home and overseas, to ensure that everything is by the book. Libra will not see the light of day, unless the “regulatory concerns” are addressed, stated Marcus after the hearing.
His post-hearing tweet reiterated the above sentiment,
The conversation was thoughtful and highlighted important issues we, and the @Libra_ Founding Members, will need to address. I want to reiterate here what I said before the Committee: We will take the time to get this right.
— David Marcus (@davidmarcus) July 16, 2019
Marcus is certainly adhering to the lawmakers’ repeated concerns; from the Fed Chair, to POTUS, to the Treasury Secretary and now the Committee, the Libra main-man seems to have his hands full at the moment. With the Senate hearing done, Marcus will sit before the US Financial Services Committee soon. And by the looks of things, his stint in Washington D.C. will go on for a while now. If I were Marcus, I wouldn’t book my flight to California just yet.
EOS, Ethereum and Ripple’s XRP – Daily Tech Analysis – 24/01/20
EOS slid by 2.01% on Thursday. Following on from a 0.13% decline on Wednesday, EOS ended the day at $3.5749.
It was a bearish start to the day. EOS slid from an early morning intraday high $3.6481 to an early afternoon intraday low $3.4948.
Steering clear of the major resistance levels, EOS fell through the first major support level at $3.5697.
EOS fell back through the first major support level at $3.5697 to $3.51 levels before late support kicked in.
At the time of writing, EOS was down by 3.59% to $3.4465. A bearish start to the day saw EOS fall from an early morning high $3.5740 to a low $3.4051.
EOS fell through the first major support level at $3.4971 and the second major support level at $3.4193 early on.
For the day ahead
EOS would need to break back through the first major support level and move through to $3.57 levels to support a run at the first major resistance level at $3.6504.
Support from the broader market would be needed for EOS to break back through to $3.50 levels.
Barring a broad-based crypto rebound, however, EOS would likely fall well short of $3.60 levels on the day.
Failure to move through to $3.57 levels could see EOS struggle throughout the day.
A fall back through the second major support level at $3.4193 would bring sub-$3.40 levels into play.
We would expect EOS to steer well clear of the third major support level at $3.2660, however.
Looking at the Technical Indicators
Major Support Level: $3.4971
Major Resistance Level: $3.6504
23.6% FIB Retracement Level: $6.62
38% FIB Retracement Level: $9.76
62% FIB Retracement Level: $14.82
Ethereum slid by 3.18% on Thursday. Following on from a 0.95% fall on Wednesday, Ethereum ended the day at $162.4.
Bearish through the day, Ethereum fell from an early morning intraday high $167.79 to a late afternoon intraday low $158.44.
Ethereum fell through the first major support level at $165.20 and the second major support level at 162.73.
Finding late support, Ethereum moved back through to $162 levels to limit the loss on the day.
At the time of writing, Ethereum was down by 2.38% to $158.54. A bearish start to the day saw Ethereum fall from an early morning high $163.00 to a low $157.55.
Ethereum fell through the first major support level at $157.99 before moving back through to $158 levels.
For the day ahead
Ethereum would need to move through to
Support from the broader market would be needed, however, for Ethereum to break back through to $160 levels.
Barring a broad-based crypto rebound, Ethereum will likely fall well short of $165 levels on the day.
In the event of a rebound, the first major resistance at $167.31 and Thursday high $167.79 would likely limit any upside.
Failure to move back through to $163 levels could see Ethereum spend the day in the red.
A fall through the first major support level at $157.96 would bring $155 levels into play before any recovery.
Barring an extended sell-off, however, Ethereum should steer clear of the second major support level at $153.53.
Looking at the Technical Indicators
Major Support Level: $157.96
Major Resistance Level: $167.31
23.6% FIB Retracement Level: $257
38.2% FIB Retracement Level: $367
62% FIB Retracement Level: $543
Ripple’s XRP slid by 4.71% on Thursday. Following on from a 0.12% decline on Wednesday, Ripple’s XRP ended the day at $0.22583.
Tracking the broader market, Ripple’s XRP slid from an early morning intraday high $0.23725 to a late intraday low $0.22077.
Ripple’s XRP fell through the first major support level at $0.2327 and the second major support level at $0.2285.
Finding support at the third major support level at $0.2206, Ripple’s XRP recovered to $0.2260 levels before easing back.
Ripple’s XRP failed to break back through the major support levels late on.
At the time of writing, Ripple’s XRP was down by 1.96% to $0.22141. A mixed start to the day saw Ripple’s XRP rise to an early high $0.22628 before sliding to a low $0.21771.
Ripple’s XRP fell through the first major support level at $0.2187 before recovering to $0.22 levels.
For the day ahead
Ripple’s XRP will need to move through to $0.2280 levels to support a run at the first major resistance level at $0.2351.
Support from the broader market would be needed, however, for Ripple’s XRP to break back through to $0.23 levels.
Barring a broad-based crypto rebound, Ripple’s XRP would likely fall well short of the first major resistance level and Wednesday’s high $0.23725.
Failure to move back through to $0.2280 levels could see Ripple’s XRP struggle throughout the day.
A fall back through the first major support level at $0.2187 would bring the second major support level at $0.2115 into play.
Barring a crypto meltdown, however, Ripple’s XRP should steer of sub-$0.21 levels.
Looking at the Technical Indicators
Major Support Level: $0.2187
Major Resistance Level: $0.2351
23.6% FIB Retracement Level: $0.3638
38.2% FIB Retracement Level: $0.4800
62% FIB Retracement Level: $0.6678
This article was originally posted on FX Empire
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