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Gloomy Future For Libra Crypto as Central Banks Pose Tough Questions

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Not a week has gone by since Facebook announced its lofty crypto ambitions that it hasn’t been torn apart for one reason or other. Now it is the chance for the central banks of the world to grill the social media giant on its plans to compete with them all.

Calibra Crypto Concern Intensifies

US lawmakers have had their turn at lambasting the crypto project and this week it will be the turn of the bankers to get their gloves on. Officials speaking to the Financial Times said that Libra representatives are meeting with officials from 26 central banks in Switzerland today.

Two of the planet’s largest banks will be represented which are the Bank of England and the US Federal Reserve and it is unlikely either of these will be supportive of the project. The session is to be chaired by the European Central Bank’s Benoît Coeuré.

Facebook, who haven’t really had a choice, has said it welcomes dialogue with regulators and banks and purposefully set a long launch schedule for this purpose. Clearly Zuckerberg et al knew there would be heavy resistance to a new global currency with potentially billions of users that is controlled by a billionaire and a consortium of US tech and finance giants.

Politicians and bankers generally share the same opinion of cryptocurrencies, knowing that they have the potential to undermine central banks and the existing financial system that is tightly controlled by the governments of the world.

Both France and Germany have already stated that they want nothing to do with Libra and that it should be blocked in the EU. It appears that the market for this crypto coin is diminishing before it has even got off the ground. India, which is the social media platform’s largest user base, has said Libra would not be permitted on its shores, and China has banned the platform in entirety.

Scam Central

It was also reported this week that scams relating to the sale of Libra tokens were already increasing. This is surprising since the minting press has not even been fired up yet. Tomer Barel, Calibra’s chief operating officer, said that the company has no connection to any trading that is taking place in Libra investment tokens, adding that they don’t even exist yet so whatever is being sold at the moment is thin air.

Ironically users have been setting up fake pages and groups on Facebook’s own platform impersonating official Libra token sales outlets. It is this sort of thing that makes the company totally unsuitable to manage global finance when it cannot even control what users are doing on its own website.

Facebook is clearly running out of friends, and it sure doesn’t have many likes for the crypto project but considering its track record, that notion is hardly surprising.

Source: newsbtc

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The UAE financial regulator asking for feedback on incoming crypto regulation

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  • UAE’s financial watchdog, SCA, has published draft regulations and are asking for feedback. 
  • They will be providing final drafter legislation regarding the industry, once all is digested in terms of feedback. 

The financial watchdog, the United Arab Emirates’ (UAE) Securities and Commodities Authority (SCA) recently published a set of draft regulations for crypto assets. 

The organization is seeking feedback from the industry, as noted via an official statement from Oct. 15. The SCA will be collecting public feedback on the draft regulations until Oct. 29, prior to providing the final drafted legislation regarding the industry. 

It details that all parties involved in the crypto industry, including; investors, brokers, financial analysts, researchers, media and others, are invited to provide their feedback on the document, the SCA noted, adding that the proposals will be taken into consideration for the final regulation. Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

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Crypto Milestone: Bitcoin, Ethereum, XRP, Bitcoin Cash and Litecoin-Based Shares Score Regulatory Approval As Grayscale Investments Soar

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Grayscale Investments, the world’s largest digital asset manager with $2.1 billion in assets under management, has received approval from the Financial Industry Regulatory Authority (FINRA) to issue shares to the general public of its Digital Large Cap Fund (DLC). The fund is comprised of different cryptocurrencies and is similar to an exchange-traded fund.

According to the company’s announcement, this is the first publicly-quoted security in the US tied to a “diverse selection of digital assets.”

“DLC has offered a private placement to accredited investors since February 2018. As of September 30, 2019, there were 3,194,900 shares outstanding of DLC.

Shares created through DLC’s private placement become eligible to sell into the public market after a statutory one-year holding period under Rule 144 of the Securities Act.

There will be no trading volume in the shares’ public quotation until the shares are DTC eligible, which GDLC is expected to receive soon. Investors will be able to buy and sell freely tradable DLC shares through their investment accounts in the same manner as they would other unregistered securities.”

As of September 30th, the DLC fund was comprised of about 80% Bitcoin, 10% Ethereum, 6% XRP and 2% each of Bitcoin Cash and Litecoin. Shares were valued at $5.19, as of October 11th.

Grayscale’s “Drop Gold” campaign, which launched earlier this year, contributed substantial inflows in Q3. The company reports a surge in investments, rising from $85 million in the previous quarter to $254.9 million. 84% of the new funds came from hedge funds and other institutional investors.

Despite recent declines in digital asset market prices, hedge funds are pouring money into Grayscale’s products which have marked their strongest performance since the firm’s inception. The record inflows show a strong demand from institutional investors who want exposure to cryptocurrencies and can invest amidst regulatory uncertainty without having to hold the assets directly.

The third quarter report also shows that the majority of the investors purchased Grayscale shares using cryptocurrency instead of cash, primarily using Bitcoin for shares in the company’s Bitcoin trust.

You can check out the full report here.

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WATCH: MyCrypto CEO Taylor Monahan on Crypto Adoption and Ethereum

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At Devcon 5 last week, CoinDesk’s Leigh Cuen sat down with MyCrypto CEO Taylor Monahan to chat about user adoption and the state of ethereum.

Founded in 2015, MyCrypto makes the blockchain more accessible through customer-first products for ethereum and ERC-20 tokens.

As Monahan told CoinDesk, MyCrypto focuses on the customer experience:

“People are used to the Googles and the Facebooks and you type in your username and your password and if you forget it like they’ll recover it for you and everything’s fine. And then they enter crypto and it’s like, ‘No, that’s not how the world works.’”

As a wallet provider, MyCrypto is the first touching point for many crypto newbies, and onboarding non-crypto customers to crypto has its own set of unique challenges.

Monahan said:

“How can we make this similar to existing systems? And where it just is different, how can we educate the user? Because at the end of the day, we do want people to hold their own crypto.”

sourde:coindesk

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