The Libra cryptocurrency project should be sufficient motivation for the Federal Reserve launch a real-time payments system, a senior government official wrote Thursday.
Federal Trade Commission (FTC) commissioner Rohit Chopra wrote a letter to the Fed – the U.S. central bank – supporting the potential development of the “FedNow Service,” the potential high-speed payments system the group is now examining.
And, joining other government officials worldwide, Chopra criticized Libra, the Facebook-led cryptocurrency project first unveiled in June.
“The vague and scant details on the tech platform’s proposed shadow global central bank have sounded international alarm bells, particularly in light of Facebook’s ongoing scandals and reputation for abuse,” he wrote. “The laundry list of risks raised by the Libra project will take time to unpack and address. I share the serious concerns raised by Chairman Jerome Powell and Governor Lael Brainard.”
However, he sees getting a public sector solution to the current payments system as more important, writing:
“Regardless of Libra’s ultimate fate, the proposal’s emergence underscores the appetite for real-time payments and the urgency of intervention by the Federal Reserve.”
He sees demand for fast payments, noting the “pent-up frustration” with large bank fees and noting that “other real-time technologies” have been spreading rapidly.
It is not yet clear what FedNow could look like, nor how it would operate. The project will not go live until 2024.
Though there is no indication that FedNow will utilize blockchain at any point, two U.S. lawmakers have written to the Fed to inquire about its views toward the technology. Last month, Reps. French Hill (R-Ark.) and Bill Foster (D-Ill.) outlined a number of questions for the Fed, noting that the dollar’s global supremacy may be at risk if other nations develop a widely adopted digital fiat currency first.
The Fed plans to respond to the letter at an indeterminate future date
Mainstream Shoppers on Shopify Could Ignite Facebook’s ‘Crypto’ Project Libra As E-Commerce Giant Joins Mission
E-commerce platform Shopify is joining the Libra Association, breathing new life into Facebook’s beleaguered “crypto” project that lost a string a high-profile members last year. The Canadian multinational e-commerce giant manages online stores and retail point-of-sale systems for over one million businesses in 175 countries.
Shopify reduces a number of pain points for small merchants that run online shopping portals. It provides payment services, marketing and shipping.
The partnership boosts the type of mainstream synergy the Libra Association is hoping to score for its mission to facilitate online and cross-border payments worldwide by developing a digital asset along with an easy-access blockchain wallet.
The Libra coin is a stablecoin that will be tied to a basket of currencies. Controlled, at least initially, by the Libra Association, which is a Swiss-based governing body comprised of several companies and organizations, including Coinbase, Thrive Capital Spotify and Union Square Ventures, the blockchain-based digital asset differs from Bitcoin (BTC) and other truly decentralized cryptocurrencies, which are not controlled by any central authority.
Given Facebook’s checkered track record on privacy issues, seven high-profile members dropped out of the controversial project last year: Visa, Mastercard, Booking Holdings, eBay, PayPal, Stripe and Mercado Pago. Vodafone withdrew in January.
That’s not stopping new players from recognizing a core value proposition in Libra. According to Shopify’s announcement, the company is motivated by its mission to help people around the world who don’t have easy access to money and banking, calling the status quo a “global problem”.
“As a member of the Libra Association, we will work collectively to build a payment network that makes money easier to access and supports merchants and consumers everywhere.
Our mission has always been to support the entrepreneurial journey of the more than one million merchants on our platform. That means advocating for transparent fees and easy access to capital, and ensuring the security and privacy of our merchants’ customer data. We want to create an infrastructure that empowers more entrepreneurs around the world.”
Despite Facebook’s efforts to appease the skeptics and regardless of remarks made by David Marcus in October assuring the US Congress that the project will not move forward without approval from regulators, the European Commission says it doesn’t have enough details about Libra.
In a memo released on Tuesday, Valdis Dombrovskis, Executive Vice President of the Commission, writes,
“There is a need to ensure clarity about the legal status of the Libra initiative. However, the available information on Libra and the Libra ecosystem lacks detail. Therefore, the Commission sent to the Libra Association a set of questions to get further details on the project. However, as Libra is still a project, and thereby a moving target, the information provided remains insufficient for determining the precise nature of Libra and, by extension, its relation with existing EU law.”
Facebook’s Libra and what you need to know about it
Facebook’s Libra created a huge commotion since its announcement in mid-2019. The project was revealed as one of the most ambitious crypto projects ever. Moreover, the project’s parent company did not have a flawless reputation and was involved in the Cambridge Analytica data scandal. This caused huge concern and uproar in both the crypto sector and the global financial industry. Now, the crypto is expected to start trading in a few months.
What is the goal of Facebook’s Libra?
Facebook seeks to connect every person with a mobile phone to the global financial infrastructure. These people are considered by Facebook as the ‘unbanked,’ people who own a mobile phone but do not have access to a bank.
With Libra, Facebook seeks to empower these people with the ability of money transfer across the globe at a very low cost.
Facebook’s Libra would have a very secure blockchain network with a system that includes 100 computer servers. This would make the system very resistant to attacks, as any attack would need to breach at least one-third of its 100 servers.
Moreover, through an algorithm that is programmed o work as a “command-line program,’ the system would make interactive usage possible. As per Libra Association’s claim, each of its members would have their own server that would be secured by them independently.
The system would work with a consensus protocol that would require the approval of at least two-thirds of the servers before a transaction can go ahead. As per the claim, Libra is capable os supporting a thousand transactions per second, making it 500 times more efficient than Bitcoin.
The Fake Libra Airdrop Platform is Making the Rounds Once Again
Facebook’s Libra digital currency is not going anywhere any time soon. Even though most people are aware of this, the UpLibra scam is trying to make the rounds once again.
No one can obtain Facebook’s Libra at this time.
THERE IS NO LIBRA CURRENCY
Given the current regulatory pressure, it seems unlikely that anyone will, for the foreseeable future.
It would also appear that the overall interest in this project has waned significantly.
Despite the unavailability of this token, several scam sites have popped up.
They all claim to give users early access to Libra despite this currency not even existing.
UpLibra is a great example of such a shady website.
It aims to position itself as an OTC trading system for Faebook’s digital currency, even though no supply exists.
Most people won’t fall for these tricks, but free money often attracts a lot of interest.
Users will need to sign up for the platform to gain access to this alleged airdrop.
It appears that this is a way to harvest user details for who knows what.
This information can be sold to advertisers or sued in phishing attempts, to name a few possible outcomes.
It is best to stay away from any Libra-related site now, and even in the future.