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Facebook Defends Libra Cryptocurrency in Sometimes Hostile Senate Hearing

Ahead of the launch of its new global cryptocurrency, Facebook (FBGet Report) sent its crypto chief David Marcus to the Senate Tuesday to face questioning from the U.S. Senate Committee on Banking, Housing, and Urban Affairs.

The mixed reaction Marcus received among senators was mostly divided along party lines, with some of the toughest questioning coming from Democratic Senators still skeptical of the company in the wake of the Russian election hacking scandal that Democrats blame for their candidate’s loss in the 2016 presidential election.

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Senator Mark Warren (D-VA) stated that “Facebook has a history of buying or copying competing technologies,” before demanding that Marcus assure the panel that competing digital wallets wouldn’t be hindered on WhatsApp and Messenger, two of Facebook’s most popular products.

Marcus went back and forth with Warner before assuring Warner that users would be able to send and receive non-Libra digital currencies on Facebook’s networks. But Marcus would not commit to embedding those competing currencies on its platforms.

Senator Sherrod Brown (D-OH) baldly stated that “Facebook is dangerous,” saying that the company has continued to misuse customer data while continually referring to each instance as a “learning experience.”

Brown concluded his remarks by saying that “it takes a breathtaking amount of arrogance to look at that record” and believe that the next move for the company should be to create a digital currency.

Republican Senators were more forgiving for the most part, with Committee Chairman Mike Crapo (R-ID) applauding the company’s efforts to provide financial services for the under-banked.

“I want to make clear that we are only at the beginning of this journey,” Marcus said. “We expect the review of Libra to be one of the most extensive ever. Facebook will not offer the Libra currency until we have addressed the concerns and receive appropriate approvals.”

Marcus also stated the Calibra network will have the “highest standards” when it comes to privacy and that the social and financial data will be completely separated.

Users will have to provide an authentic government ID so sign up for Calibra and will not be able to register by simply using their existing Facebook profiles.

Marcus stressed Calibra’s independence from Facebook, stating that the company has taken the lead in developing the technology but that it would give up the lead once the digital currency is launched.

“We will not control Libra and will be one of over 100 participants that will govern over the currency,” Marcus said. ” We will have to gain people’s trust if we want people to use our network over the hundreds of competing companies.”

Facebook shares were up 0.18% to $204.27 on Tuesday early afternoon and are up more than 55% this year.

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Source: Facebook Defends Libra Cryptocurrency in Sometimes-Hostile Senate Hearing

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JPMorgan Chase Launches Its Own Cryptocurrency: ‘JPM Coin’

JPMorgan Chase, the largest U.S. bank (and the world’s sixth largest), has created its own cryptocurrency, a stablecoin called “JPM Coin.” According to CNBC, J.P. Morgan “moves more than $6 trillion around the world every day for corporations in its massive wholesale payments business,” and in a few months, it will start trials for use of this new cryptocurrency for instant settlement of payments between its clients. The report says that J.P. Morgan is for a future blockchain-powered world, but before that happens………..

Source: CryptoGlobe

Crypto Markets Show Signs of Recovery Following Severe Losses

The vast majority of cryptocurrencies are recovering after experiencing severe losses over the last several days, according to Coin360. Of the top 20 by market capitalization, only the stablecoins USD Coin (USDC) and Tether (USDT) are still in the red. The leading cryptocurrency Bitcoin (BTC) has seen an increase of nearly five percent on the day, and is trading at around $3,717 at press time. As Cointelegraph reported earlier, BTC hit a new year-to-date low today, slumping to as low as $3,544. On its weekly chart, Bitcoin’s highest price point was $4,107 on Jan. 9…………

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Diar Report: 2018 Sees ‘Record Transacting Volumes’ on Crypto Exchanges

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Crypto Meltdown: Bitcoin and Other Cryptocurrencies Plunge to Lowest Prices in 2018 – Julie Williams

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Winter is coming! That is if it isn’t here already. This year hasn’t been a very good one for cryptocurrencies and it seems the worst is yet to come. Fear in the crypto sphere is being fuelled by the recent slump of Bitcoin ($5,219, -5.6%) and other cryptocurrencies such as Ripple ($0.482, -4.87%), Litecoin ($37.63, -9.74%), and Ethereum ($153.9, -11.4%).

According to a Bloomberg report from November 16, cryptocurrencies have yet to receive another blow that will bring them crashing to their knees, which so far at least was quite foreshadowing. I wouldn’t say Bitcoin got the worst hit but the analyst polled by Bloomberg has forecasted that the mother of all cryptocurrencies, Bitcoin, is likely to fall to $1,500, a drop which is calculated to be over 70% of its current levels. Trust me, this is the last thing we want in the crypto sphere.

The report by Bloomberg showed that the cryptocurrency tumbled 12% on November 14 alone, making it fall to its lowest value since 2017, and that was before today’s slump. It was also reported that Bitcoin has lost over 60% of its value in 2018 alone. Is this the end? Or the beginning of the end? Although many crypto enthusiasts are positive that the cryptocurrency will bounce back, a larger percent are troubled that this could be the end of Bitcoin.

To fuel the already burning fear, the founder of the hedge fund Ikigai, Travis Kling, gave a public statement saying that there is a small chance that something terrible could happen to Bitcoin Cash that would be strong enough to affect the entire crypto market negatively. Although he didn’t give a value, I guess that statement speaks for itself. Just when we needed a ray of light of hope. Even a single ray would be comforting at this time. Alas, none is forthcoming.

Commenting on the crypto meltdown, some crypto investors are of the belief that the hash war going on between the two variant of Bitocoin Cash – Bitcoin SV and Bitcoin ABC – is the reason for this meltdown. The continued fight for dominance has pushed crypto investors and miners away, hence the meltdown.

The Bloomberg article also stated that the negative impact of this meltdown also spread to the US-based chipmakers, Nvidia. Nvidia Corp. reported in its sale forecasts for the current quarter that the company has experienced lingering loss of demand from the collapse of cryptocurrency mining. According to the chipmaker, there was an oversupply of parts when the crypto market crashed due to a shortage in demand from miners.

This is indeed a hard time for the crypto sphere. As we hope for the market to bounce back to its old glory, I would like to advise crypto investors to tread this part carefully. There is no assurance that Bitcoin would bounce back anytime soon neither is there any proof that it wouldn’t. So, we just have to be prepared for the worst while we hope for the best. Better safe than sorry.

 

 

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