- U.S lawmakers disagree over Libra’s security classification
- Is Libra security or not?
Still on the matter of whether Libra security or not? Some United States Lawmakers are looking to term stablecoins as securities. With Libra considering adopting fiat-pegged stablecoins rather than a single token supported by a bag of national currencies. The proposed Crypto project by Facebook might be experiencing another regulatory issue.
For now, lawmakers are sponsoring the bill stating that stablecoins should be termed as securities to safeguard U.S consumers. Should be bill be passed, stablecoins projects like Libra will possibly fall under the purview of strict U.S securities regulations
Crypto critics of the motion state that such measures by the regulatory body will only serve to further diminish the country’s position on the evolving digital landscape. Some analysts have long accused regulators of disturbing innovation in the U.S crypto and blockchain space.
So far, Libra still stands its stance that its proposed stablecoin project is a commodity. The association is also surging forward with developing the payment system. Recently, the association released updates on the state of its testnet and itemizing the number of transactions carried out so far.
Is Libra security or not?
Two Texas representatives, Lance Gooden and Sylvia Garcia have proposed a piece of legislation that will term stablecoins as securities. The bill which is named “Managed Stablecoins are securities Act of 2019,” the bill is sponsored by representatives from both sides of the corridor. This bill could plan an even greater regulatory weight on stablecoin projects like Libra.
In a statement issued by The Hill, Representative Garcia, he stated that “Managed stablecoins, such as the proposed Libra, are securities under existing law. This legislation simply clarifies the statute to remove any ambiguity.”
Rep. Gooden, a co-sponsor of the bill also resonated with the sentiment that Congress should take the lead in forming the legal landscape for cryptos and the digital space in general. According to Gooden, “It’s the responsibility of Congress to clarify the regulatory framework that will apply to stablecoins, especially now that mainstream institutions are offering them to consumers.”
Bitcoin (BTC) Price Today – BTC / USD
It seems that consumer protection fears are at the heart of lawmaker’s deeds to put stablecoins under the security token model. Although, such a move increases the regulatory liability on Stablecoins. So far, U.S securities law consists of a litany of reporting and compliance requirements. With the prospect of Libra launching soon still uncertain, it remains ambiguous the type of token the project will use.
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.
Fed Chair Jay Powell: ‘Libra Lit a Fire,’ All Eyes on Central Bank Digital Currencies
Chairman Jay Powell is crediting Facebook’s proposed currency Libra for prompting the Federal Reserve to take a closer look at digital assets.
Speaking before the U.S. House Financial Services Committee, Powell confirms that central banks around the world are exploring the possibility of creating digital versions of fiat currencies.
“Every major central bank is currently taking a deep look at that. We feel that’s our obligation, technology has now made that possible…
Having a single government currency at the heart of the financial system is something that has served us well. It’s a very, very basic thing. It really hasn’t been in question, and I think before we move away from that, we should really understand what we’re doing.”
Libra and Facebook came under fire from Powell and other policymakers last year, when they expressed concerned about the tech giant’s track record on data privacy and the financial impact of a stablecoin that has the power to reach a built-in user base of billions.
“Frankly, Libra really lit a fire and was a bit of a wake-up call that this is coming fast and could come in a way that is quite widespread and systematically important – fairly quickly, if you use one of these big tech networks like Libra did.”
Powell reiterates that the organization is merely examining the possibility of creating a digital asset and nothing is set in stone.
“We fully appreciate the importance of making quick progress – we have not decided to do this, though. There are many questions that need to be answered around digital currency for the United States, including cyber issues, privacy issues. Many operational alternatives present themselves, so we’re going to be working through all of that.”
As for Bitcoin and the crypto markets, Powell says he believes the US should continue to develop a robust regulatory system for the emerging assets.