Goldman Sachs Is Eying To Launch A Cryptocurrency!

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In recent French news, Goldman Sachs CEO, David Solomon, revealed that the company is looking into developing its own cryptocurrency, like JP Morgan Chase. Also, the company is researching asset tokenization and stablecoins as such.

Recently a French news source Les Echos did an interview with the CEO of Goldman Sachs, asking him about cryptocurrencies and the companies plans regards them. He revealed that they are working on and researching asset tokenization and stablecoins in general. They are looking at JP Morgan Chase’s version of a cryptocurrency and they “absolutely” would follow in launching a similar cryptocurrency.

“Assume that all major financial institutions around the world are looking at the potential of tokenization, stablecoins and frictionless payments,” he commented.

He believes that that is the direction in which the payment system will go, hence stablecoins and asset tokenization. With an emphasis on “he believes”. Solomon commented this while he was asked to comment on the Facebook Libra project, which he refused, but answered: “I find the principle interesting.”

Crypto Regulation Is Coming

When asked about cryptocurrency regulation, he said that “a change is coming for sure”. What does he mean by that, we can only guess. It’s been already known for quite a while that multiple G-20 meetings have discussed the regulation of cryptocurrencies, but with no outcome. Possibly, this time they want to put a final decision on this issue.

“I think regulators around the world are watching what’s going on. They wonder how it will work and are very attentive to payment flows,” Solomon explained.

It is funny how companies quickly change their mindsets. Just recently in January, JPMorgan Chase said that crypto would only have value in a dystopian economy. Now they are in the works of launching their JPM Coin. It will run on Quorum which is a private version of Ethereum. The bank developed it in conjunction with EthLab. The main intent for this bank-like crypto is to settle portion of transactions between clients of its wholesale payments business. JPMorgan revealed that they are beginning tests with clients earlier this week.

Well not much for the banks, but this rather shows more about the great and interesting future we have ahead of us. Banks with these moves have acknowledged cryptocurrencies as such in the eyes of people who are not familiar with this matter. Payment systems will change, banks will try to offer something similar to cryptocurrencies, but eventually, people will realize – why do we need third parties, if we can do everything peer-to-peer?


Photo by Wikimedia Commons

Binance Wants To List Libra And Be Part Of The Libra Association

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Judging by recent news, it appears that Binance is in talks with Facebook about either listing Libra or joining the Libra Association. Binance’s CSO, Gin Chao, confirmed that the exchange has had discussions with Facebook about a listing process.

Recent news shows that Binance is in the talks with Facebook’s Libra project. Binance CSO Gin Chao commented that “discussions have taken place with Facebook”. The exchange wants to list Libra once the project goes live. However, Gin Chao also said that Libra will be built on a private blockchain, thus it won’t need any external liquidity, but he speculated that Facebook may desire a secondary market as well.

“Currencies benefit from a secondary market, so it would be in their best interest to want to be listed,” he explained.

Gin Chao is a former corporate development executive for NBA and DELL.

Binance Thinking About Becoming A Libra Node

In addition, Binance is also thinking about becoming a Libra node. Facebook reportedly has announced the Libra Association in which, at the moment, are 23 high-ranking companies which will all act as a permissioned node which validates transactions. Companies like Uber, Visa, Lyft, and eBay have already committed to that role.

Altogether there will presumably be 100 nodes, hence the 100 companies by the time of launch. Binance has shown interest in becoming one of the nodes. However, to become a node, Facebook charges $10 million per piece.

While the final decision is yet to be made, Gin Chao said that Binance is “definitely considering” to become a node.

“We’re definitely considering it. And so, we would like to throw our hat in the ring. Whether or not we will become one, we’ll see,” said Chao.

Moreover, Gin Chao commented on the Libra Project as such saying:

“It’s a good thing, for sure. Any time a company with the weight, size, resources, and impact of Facebook gets involved, it validates both blockchain and then, in this particular case, cryptocurrencies specifically. So whether or not Libra becomes incredibly successful, it’s already a good thing,” further adding: “It’s good that it’s taking a global perspective. There’s going to be the US dollar and a basket of other currencies. […] So I think that they have that part philosophically correct, as far as a stable coin goes.”

Binance Coin Price

In the past week, surprisingly, the price of Binance Coin has actually fallen. This might be due to the fast Bitcoin price rally. Basically, all altcoins were falling in terms of Bitcoin price, and only a few were able to break out of the pattern. Binance started the week with almost touching the $40 mark, but failed to reach it. After that, a continuous price decline has happened, and the price of BNB now sits at $34. However, considering the Year To Date time frame, Binance started the year with $5, and look where it is now. All-in-all, one of the best altcoin investments this year.


BitMex Hits New Records, Volume Reaching $16 Billion in a Single Day

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Recently BitMex reported on Twitter that it hit a record in daily volume as bitcoin went pass $13,000. BitMex, which is a leading Bitcoin derivative trading platform, topped $16 billion in volume across its products.

A few days ago, after Bitcoin had reached $13,000, BitMex went on Twitter and revealed that their daily volume across all products had touched a $16 billion mark. In detail, BitMex saw more than $1 billion of open interest on XBTUSD market and over $13 billion traded on the XBTUSD pair.

The company CEO, Arthur Hayes excitingly commented:

“XBTUSD perp swap open interest is now in the 3 comma club. Welcome to the 2019 bull fucking market YeeHaw!”

While at the moment, Bitcoin sees a slight correction, few of the trading platforms are seeing similar records. For example, Bitcoin futures trading platform CME group, also reported an all-time high trading volume in the last couple of months.

Who’s Behind This Bull Market?

Many experts still debate on which investor segment is funding this bull market – retail or institutional. Or maybe the recent Libra announcement? Nevertheless, the fact is that Bitcoin and cryptocurrencies, in general, are seeing massive amounts of money pulling in and no one can predict whether this is just temporary or are we actually gearing up for a new all-time high for Bitcoin. Many debate that the FOMO effect could be the drive for most of the investors and traders because Bitcoin is showing a rapid growth this year. The emotional barriers also need to be considered, because Bitcoin over the $10,000 mark is more bullish than under it. The fact being that, it hasn’t stayed for long in the range of $10,000 to $20,000. Indicating that it could be in the search for a new ATH since this year Bitcoin is doing similar moves like in 2017. That is – going pass heavy resistance marks in just days or even hours. Also, since nothing is clear, we can either go to the moon or experience a huge bull trap in the upcoming days.

BitMex Arthur Hayes VS Nouriel Roubini

In the BitMex Tweet, they also mention the upcoming debate between BitMex CEO and Nouriel Roubini in the Asian Blockchain Summit which is about to happen in July. Roubini is an infamous crypto disbeliever, also academic, who is known as the “Doctor Doom”.

Roubini believes that crypto “is a farce” and BitMex put an emphasis on this in their volume tweet saying that their CEO will debate him face-to-face in Taipei, Taiwan.

“Ain’t gonna be no rope-a-dope, just a straight knock out,” commented Arthur Hayes.

Image by Csaba Nagy from Pixabay

Bitcoin Deposits Gets Added To CashApp

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Recent news shows that Square’s CashApp has enabled Bitcoin deposits for its users. The app previously offered to purchase, sell and transact Bitcoin to other addresses. However, judging by user reviews, not all CashApp users have this feature.

Just recently CashApp users started tweeting that the popular payments application has enabled Bitcoin deposits. Although many users show appreciation and gratitude, of course, just as many users say that either their apps haven’t yet got the feature, or that trusting such third parties your Bitcoin as CashApp and similar, is reckless and doesn’t imply on you holding your keys. However, CashApp has done similar activities in the past. In November 2017, they also allowed several users to buy and sell Bitcoin. Later, they announced this feature to all users.

Additionally, about a week ago, Marty Bent tweeted an image, showing that he can accept Bitcoin deposits on his CashApp.

This points out to question – How long has Square prepared for this move? How long have they developed this feature? This means that they gave access to a round of selected people to test their app before they announce it publicly.

However, users have reported that if you have enabled the withdraw function once on your CashApp, the company will ask you questions about your job position, source of income and other KYC type of questions, in order to enable the deposit function.

Square Along with Jack Dorsey, the CEO, Heavily Invests in Bitcoin

It is well known for crypto enthusiasts that Square and Twitter CEO Jack Dorsey is a massive Bitcoin proponent. In addition to that, earlier reports show that Square in the first quarter of 2019 alone was bringing in $65.5 million revenue through Bitcoin. The actual profit was somewhat around $830,000. Square also has another side company – Square Crypto, which is focusing only on Bitcoin. At the moment, they are hiring new developers, in order to develop tools for the Bitcoin blockchain. CoinDesk reports that former Google director Steve Lee has been recently named as the first new member of the team, however, his role hasn’t yet been specified.

As for the CEO Jack Dorsey, as mentioned above, he is a massive Bitcoin proponent. Once he has said that Bitcoin will become a global currency for all. Another interesting fact is that he has revealed that he is buying Bitcoin for as much as $10,000/week.

In addition to this news, it is worth mentioning that Square’s CashApp, currently is only available in the United States.


Kraken Recently Closed a $13.5 Million Crowdfunding Round!

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Just recently, one of the top regulated crypto exchanges Kraken, completed its crowdfunding round with $13,5 million raised. That way, Kraken pushed the company valuation towards $4 billion. The round of financing was done on an investment platform called Bnk To The Future and it gathered more than 2,200 participants.

Kraken, which is a regulated spot and futures crypto exchange, recently closed it’s funding round on an investment platform Bnk To The Future with a little more than $13,5 million raised. This turned out to be the most successful funding round on Bnk To The Future with more than 2,200 participants joining. Simon Dixon, the co-founder of Bnk To The Future told that Kraken sought the capital as a way to push it’s valuation past the $4 billion mark and fund new acquisitions.

For this funding round, Bnk To The Future created a Special Purpose Vehicle (SPV) for Kraken to receive equity indirectly from the plus 2,200 investors. That is known as a illiquid investment.

“The SPV then pools all the individual funders and acts as a single capital investor. This technique allows Kraken to bypass the SEC requirement that force it register as a public company under the 1934 Securities and Exchange Act,” writes CoinDesk.

This makes the investors not shareholders of Kraken and will realize a return only in three cases:

If Kraken starts an IPO; Gets sold to an organization; or if the exchange does a Management Buy-Out.

Originally, Kraken asked for $10,2 million in the first funding round. After four days, they saw that the market has a deep interest and extended it to a goal of $15,45 million. Even though it is reported that the funding round ended with $13,5 million raised, Simon Dixon said that they are still waiting for around 250 bank wires to go through. He expects somewhat around $14 million to be raised.

Massive Investments, Massive Perks

Simon Dixon revealed that the average investment was around $100,000, which is 10 times more than all the previous 120 funding rounds on Bnk To The Future. 60 percent of investors chose to stake fiat while the rest 40 percent chose to stake crypto. Usually, as Dixon described, they see a 70:30 ratio between fiat and crypto. He believes that this is because the crypto bull market which makes the prices rise. Another major factor on why so many investors chose to fund Kraken is because of the perks that Kraken offered.

“CryptoWatch Premium membership, the ability to leverage shares for margin collateral, priority service from our client support team, invitation to Kraken’s exclusive investor chat room, subscription to Kraken’s Daily Hash newsletter and OTC Daily report, bi-annual Kraken investor update, beta access to new Kraken products and features, limited edition Kraken swag, [and] 5% investment rebate in KFEE,” reads an e-mail which was sent to all the investors.

However, one Bnk To The Future client decided to “write down the numbers” and came up with a rather interesting statement:

“Your $1k investment bought you about 48 future shares (from 201.612.210 in total). If Kraken is really worth $4bn in the end you own 0,00002380808% of this pie. And that’s about the sum that you invested. But as you are in the “preferred share class” you get your investment back even if Kraken sells only for $112 million. Only if Kraken sells for more than 4bn we will make money.”

Additionally, Bnk To The Future has some pretty strict guidelines when it comes to registering on their platform. Investors need to either prove that they have incomes over $200,000 for the past two years, a combined income with a partner of $300,000 over the past two years, or have a net worth over $1 million. Needless to say, they all needed to pass KYC requirements.


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Litecoin Foundation Announced Physical Debit Card

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The Litecoin Foundation has recently teamed up with Bibox Exchange and Ternio to bring customers a special edition Litecoin BlockCard. With this card, the three parties wish to help propel the adoption of cryptocurrencies by allowing customers to purchase goods and services with crypto.

Today, June 19, 2019, The Litecoin Foundation announced that they are teaming up with Bibox and Ternio. With their new card, cryptocurrency users will be able to spend their crypto anywhere in the world where major credit cards are accepted. The card will leverage the already existing Ternio BlockCard platform.

The users of the card will have the ability to deposit various cryptocurrencies. After, they can choose to keep their spending crypto in Litecoin, Bibox Token or Ternio token.

“Bibox has always positioned ourselves as being on the forefront of crypto adoption,” said the Co-Founder of Bibox, Aries Wang adding: “By partnering with the Litecoin Foundation and Ternio we are able to leverage Bibox’s robust exchange platform to help bring consumers more options to spend cryptocurrency with unprecedented ease.”

Bibox Exchange – The Custodian

The custodian role will be played by the Bibox Exchange. Today it has more than $200 million in daily trading volume and it will be the main router of user deposits and spending. At first, the crypto-friendly card will be released only to U.S. citizens, but all the parties promises that “soon after” they will expand the services to non-U.S. Citizens. The credit card will be directly integrated into the Bibox Exchange and LoafWallet which is the official Litecoin wallet. Users using these platforms will get a direct access to the crypto cards and could start spending immediately.

“This is an exciting partnership for us as it furthers the Litecoin Foundation’s mission to create more use cases for spending Litecoin in everyday life,” said Charlie Lee. “Leveraging Ternio’s BlockCard platform with Bibox’s exchange engine gives Litecoin holders unparalleled access to use their LTC at merchants around the world.”

The Litecoin Foundation says that within weeks they will notify their customers on how to register for access to their card. The Litecoin official wallet LoafWallet is available for iOS and Android devices. If you haven’t yet registered on LoafWallet, then do it, because that way you will receive exact updates on when the service goes live.

Has this affected the Litecoin price?

Of course, Litecoin experienced a severe price increase because of this news. Litecoin’s price was $130 around the time of the announcement, and recently it reached a new all-time high of $144. Now, after the weekend, it has leveled out at $135. All-in-all, this year, Litecoin has been one of the top performing assets. The cryptocurrency started this year with a price of $30 and now has grown out to $135. That’s approximately a 420% growth.


Image from The Litecoin Foundation.

Interview with “FinanceFirst LTD.”, the Company Used by Scammers!

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It all started at the beginning of this year. In early January, BiteBTC, a cryptocurrency exchange, reported that they occurred a fire within their data centers. From this point on, the users of BiteBTC couldn’t even imagine the pain they will have to go through. We interviewed one of the companies that BiteBTC used as a cover to hide their illegal activities. The company – FinanceFirst LTD., was on the footer of BiteBTC for quite some time, indicating the official address and company name. Recently Investment Stab started receiving e-mails from the victims of BiteBTC. That’s when they found out that their company is being used by fraudulent purposes.

After the fire, BiteBTC claimed that their main backup servers were destroyed. Interestingly enough, this happened three days before the annual Proof-of-Keys event, where users withdraw their funds located on exchanges in order to see the exchange’s ability to provide solvency. Apparently, BiteBTC failed, as, after the fire, many users started complaining that they can’t access their accounts. Since then, we have dug a little deeper and tried to educate our readers on this possible scam.

Today, it seems like they are still operating the same way as they were after the fire. We still receive customer complaints about this exchange. They are locking users funds, and banning them form the website. The most common practice is to use a higher price of other cryptocurrencies, so that newcomers register in order to use the arbitrage opportunity within the exchange. Their first deposit is successful as well as the first trade. The problems start when customers are trying to withdraw larger sums than $100. Their accounts immediately get blocked and they receive an e-mail explaining that they have violated the company’s terms of service. When contacting the support team, usually there is no answer or they just describe that there is nothing a user can do.

Additionally, their Twitter profile is packed with negative user complaints and it looks like they are still operating. Of course, now they have changed the website footer to a different company FirstFinance LLC which is supposedly based in Seychelles.

Approached By Falsely Accused Owners

When we first reported about BiteBTC we found customer findings of the possible owners of BiteBTC. Once we published the article, a few weeks later we got approached by a company which was previously mentioned on the website footer of BiteBTC as their legal name and address. The company was FinanceFirst Pte. LTD. It is a Singapore company which specializes in educational material on investing in their blog Investment Stab. They contacted us by saying that they have nothing to do with BiteBTC and that their company name is being used by scammers! They even shared a message to all users who got scammed by BiteBTC.

Since we are still receiving e-mails from BiteBTC victims, we decided to do an interview with the owners of FinanceFirst Pte. Ltd, and their company Investment Stab. They explain how they encountered the scam and what can the victims possibly do if they realize that they have been scammed. Enjoy!

Explain who you are and what is your primary business?

We are Investment Stab, a financial blog under the company FinanceFirst Pte Ltd, registered in Singapore. Our primary business is in media advertising.

When did you first find out about BiteBTC using your company’s identity?

We first got a few emails in our corporate mailbox around the second half of 2018. We thought that these were scam emails and so we deleted them and brushed them off. We only started to take notice in early 2019 when the victims started contacting us on LinkedIn. It was then when we did a Google search on ourselves did we realised that BiteBTC had used our name for fraud.

How do you think and why they chose your company?

We were unlucky? They chose a company that is new, has a finance name, dealing in the media industry, is relatively small, and in a country that is currently being promoted internationally as a fintech hub.

How has that affected your business and its credibility? Financial issues?

It hasn’t affected the normal dealing of our business, but it has affected our credibility when it comes to us publishing our content to our audience. The more critical issue is that it has impacted us personally as our directors’ personal information was leaked online, and it led to victims coming to harass us.

The BiteBTC scam seems to be still ongoing, are there any extra steps that you as a company have taken against BiteBTC? Have you had any communication with them? Maybe legal works?

They have since changed the company name they used to another company’s. We have also lodged a police report on BiteBTC. We can only tell the public we are not related to BiteBTC and hope that people don’t become the next victims.

What is your opinion, what needs to be done to stop scammers like BiteBTC from continuing to operate? Many victims have filed multiple complaints in various countries, do you think that helps? Can the authorities do something?

People need to be more educated, do more research, and not be blinded by greed. This was what we set out to do: to get people financially educated and informed.

What is the best advice what to do if you just found out that you got scammed by BiteBTC?

Contact the local authorities regarding the scam, and provide the authorities with all the relevant information that could aid them in their investigation. Also, be mentally prepared that the money might never be coming back to me.

Any further steps you are executing regards this issue? Can the community help?

If the community has any new information, do share it with their local authorities, or pass the information to the forums/blogs/chat groups created for this scam. What us at Investment Stab can do, is to educate, and spread the word that BiteBTC is a scam and that there could be many more of such scams preying on unknowing investors. Investors need to stay alert, and not put in their life savings. As with all prudent financial planning, never invest money that you cannot afford to lose – because you just might lose everything if you invest in a wrong company.

Your advice to cryptocurrency enthusiasts?

The cryptocurrency world is just like the dot-com bubble in the early 2000s, there are going to be crypto that will be wildly successful, and creates lots of richest. The 2000s created really successful companies like Amazon, Adobe, ARM, eBay; but 99% of those other dot-com companies also crashed. The same pattern will happen in the crypto world – some will succeed, many will crash, we just don’t know yet which one will belong to which side, so invest cautiously.

Thank you Investment Stab/FinanceFirst LTD. for your time! We hope that this issue will soon be taken care of and addressed globally. Be sure to visit their website and check out their blog! They have amazing material on traditional assets and investing in the traditional markets.

Photo by Daniel McCullough on Unsplash

Facebook’s Project Libra Will Change Cryptocurrency Industry Forever

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Since Facebook revealed its new project Libra, and everything that is related to it, people are starting to wake up and speculate – Is Facebook’s Project Libra going to take over the cryptocurrency industry? Such a company which has billions of daily users simply couldn’t not leave a mark. Whether it will be a good or a bad mark, let’s see.

As we reported earlier, Facebook announced the white-paper of their ever long speculated crypto project – Libra. Along with Libra came the Libra Association, Libra Reserve, and Calibra. Calibra will first serve as the digital wallet where users can store their Libra’s and exchange with each other. Libra Association will govern this app, and eventually, Calibra is meant to develop financial services and products around the Libra Network. The Libra association consists of 28 large corporations and companies which specialize in wide range of industries coming from blockchain and finance ranging to entertainment and telecom companies.

After these news struck the cryptocurrency ecosystem, people are starting to ask questions, whether Facebook could disrupt the crypto industry as a whole?

Facebook Completely Misunderstands Money

As Caitlin Long, the member of Wyoming Blockchain Task Force, also known as the crypto Mom, yesterday described in her first Project Libra analysis:

“Facebook completely misunderstands money. Facebook understands payment systems – but that’s not the same as money. Two telling quotes: “Libra is backed by a reserve of real assets.”; “Many cryptocurrencies today (eg #Bitcoin & #Ether have no underlying assets to back them.” Money is a good that serves as an HONEST LEDGER – it doesn’t need to have intrinsic value because it attains value by people trusting it to be an HONEST LEDGER.”

She points out that just because Facebook is backed by many different assets, doesn’t mean that people will give the currency value. She believes that Facebook has widened the conversation on what money really is.

“Libra is the first denationalized “money” that billions of people in the world will encounter […] billions of people will soon become woke to the unfairness and instability of current monetary and payment systems,” writes Caitlin in her Twitter profile adding: “People are smart – they will figure out Libra isn’t scarce and will migrate to bitcoin and other crypto over time,” she predicts.

Libra Will Educate More Users

Because of yesterday, millions, if not billions, of people realized that cryptocurrencies are a real thing because up until now, all they had heard about crypto or Bitcoin was that it is a speculative and very volatile market without any future or actual use case. Now when the man himself – Mark Zuckerberg makes a Facebook post about a cryptocurrency that Facebook is developing… I mean, I fully believe that yesterday alone made more people aware than the last years in crypto combined.

The fact that a company of such scale and authority recognizes crypto as a asset class, that has a use case, is huge! And I tend to agree with Caitlin. The time frame could be 5 years what we are looking for, but eventually people will start looking into other crypto’s. I mean, as soon as project Libra will lack in something, there will always be hundreds of cryptocurrencies that will do it better. And you know – once you start fooling around with sh… I mean Altcoins, you eventually find Bitcoin and stick to it. Of course, everything won’t go as smooth as I just described and it most definitely won’t happen anytime soon, but it could be a pattern. Most importantly, if Libra or Facebook is talking about third-world countries where people are struggling to even pay the transaction fee, then once they take the bite by Facebook, they will realize that because of crypto there can be even less fees or even a fee-less system.

But all-in-all, Facebook has done a really great job in terms of courage of taking the first step. It could’ve been Google, or any other company, but Facebook took the first bite and takes on the mission to educate billions of people. These might not be intentional lessons on what crypto is, but still, this will do just as fine.


Facebook’s Project Libra Already Being Oppressed by Governments!

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Facebook announced Project Libra white-paper yesterday along with Calibra, the digital wallet meant for transacting Libra. While people are celebrating and congratulating Mark Zuckerberg for this new achievement, various governments have shown oppression towards the highly anticipated project.

U.S. House Financial Services Committee asks To “Pause the Project”

Democratic Republican Maxine Waters, who is on the chair of the House Financial Services Committee, briefly after the Libra white-paper announcement, requested Facebook to pause the development on the project.

“Given the company’s troubled past, I am requesting that Facebook agree to a moratorium on any movement forward on developing a cryptocurrency until Congress and regulators have the opportunity to examine these issues and take action,” she said in a statement on Tuesday.

The hearing was called earlier that day by Republican Patric McHenry who also commented on this issue:

“While there is great promise for this new technology in fostering financial inclusion and faster payments, particularly in the developing world, we know there are many open questions as to the scope and scale of the project and how it will conform to our global financial regulatory framework,” he explained adding: “We need to go beyond the rumors and speculations and provide a forum to assess this project and its potential unprecedented impact on the financial system.”

And a senator, also a democrat, Sherrod Brown, expressed a particularly powerful comment on his Twitter account.

It’s like Caitlin Long tweeted that Facebook along with Libra finally will boost the governments willing to finally distribute legitimate regulations for this industry. However, I get the feeling that the U.S. government is acting like they haven’t heard of this project… like, ever! Facebook have been developing this so-called cryptocurrency for about a year, but once they release the white-paper, suddenly they want it to be paused. Maybe that is the reason, because Facebook have been ever so secretive about the development of the project.

All-in-all, Facebook have replied to these questions by saying: “We look forward to responding to lawmakers’ questions as this process moves forward.”

French Finance Minister Doesn’t Want to Allow Libra to Replace Traditional Currencies

In a radio show in France, the French Finance Minister Bruno Le Maire commented that Libra should be allowed to even talk about replacing the traditional currencies.

“It is out of question. It can’t and it must not happen,” said Le Maire in an interview on Europe Radio 1. He explained that a group of Seven central bank governors, who call themselves the guardians of the global monetary system, are preparing a report on Facebook’s project for their July meeting. They are most concerned about privacy, money laundering and terrorism finance.

Moreover, the governor of Bank of England, Mark Carney, also discussed Libra at the European Central Bank’s annual symposium in Portugal.

“Anything that works in this world will become instantly systemic and will have to be subject to the highest standards off regulation,” he stated.

At the same time, he says that “we” need to keep an open mind towards new technology that can facilitate money transfers across the world. They will look at it very closely.

It is clear that central banks across the world are freaking out, because they might lose a significant fraction of their income and operating services in general. This will soon be discussed in the G7 summit, where the top leaders of the world will gather to debate on how to regulate this exact case of project Libra. This is going to be interesting to watch in the upcoming weeks and months, so grab your popcorns and enjoy the show!


BREAKING: Facebook Reveals Libra Cryptocurrency Whitepaper and Wallet!

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Facebook just have released the whitepaper for their Libra project on, which is the official webpage for the social networks native cryptocurrency. Also, they presented Calibra, the digital wallet meant for the Libra currency. They are coming out with a bold statement to bank the unbanked. 

Libra whitepaper has just been published and the main idea for Facebook is that you don’t have to have a Facebook account to use the cryptocurrency Libra. While Libra is only the currency, Facebook comes out also with The Libra Reserve, where all the funds are going to be stored and who provided them. Then there also is The Libra Blockchain, which, they say, is a decentralized database that will have the power to become the medium of exchange for billions of people.

Moreover, they have the Libra Asociacion which includes 28 founding members like Visa, Mastercard, PayPal, Uber, Coinbase, Lyft, and others. Basically, they have brought all the best companies in every industry and put them together to work on this project. Now they have only 28 worldwide companies, but they plan to gather around 100 by the beginning of 2020 when they will launch the blockchain

“Once the Libra network launches, Facebook, and its affiliates, will have the same commitments, privileges, and financial obligations as any other Founding Member. As one member among many, Facebook’s role in the governance of the association will be equal to that of its peers.”

While Facebook’s Libra coin will offer multiple options on what to do with it, their initial goal is to solve the international remittance problem in the world.

The whitepaper explains that Libra is made up of three parts:

“1. It is built on a secure, scalable, and reliable blockchain;
2. It is backed by a reserve of assets designed to give it intrinsic value;
3.It is governed by the independent Libra Association tasked with evolving the ecosystem.”

We’re yet to find out whether the blockchain is reliable, whether people will give this coin an intrinsic value, and how good of a job will the Libra Association do in governing the project.

A New Mobile Wallet – Calibra

While many of us were speculating whether Facebook will include their wallets within the actual social network or develop a separate wallet – well now we have the answer. Calibra will first serve as the digital wallet where users can store their Libra’s and exchange with each other. I guess it’s not much of a surprise that this will be a custodial wallet. Libra Association will govern this app, and eventually Calibra is meant to develop financial services and products around the Libra Network. Also, Facebook Messenger and WhatsApp will serve as a functional wallet as well.

The Libra Blockchain is about to be launched sometime next year.

Their Main Goal is To Reach The Unbanked

Facebook highlights the problem that around 1,7 billion people in the world are unbanked.

“For many people around the world, even basic financial services are still out of reach: almost half of the adults in the world don’t have an active bank account, and those numbers are worse in developing countries and even worse for women,” Calibra writes adding: “The cost of that exclusion is high – for example, approximately 70 percent of small businesses in developing countries lack access to credit, and $25 billion is lost by migrants every year through remittance fees.”

They also have provided screenshots and videos of the app, and it looks… just like any other crypto wallet ap. It has a very smooth sense to it, but in my humble opinion – nothing special. Also, their main goal which they actualize – I believe they are being a little bit hypocritical, because stablecoins and such digital currencies have been around for quite a while and solving the same thing they want to solve – international remittances. For example Ripple. They are leaving out the fact that this Libra project is backed by the largest corporations in the world and is fully centralized, not decentralized as they would want.

Now the Calibra wallet is just in a Testnet phase where it serves only like a wallet, but eventually, their plan is to allow users to pay for all sorts of services like bills and public transit. Some say that Facebook is entering the WeChat or Alipay market.

Everlong Regulatory Issues

This is where the regulations come in. Of course, they want to be regulated in every corner of the world, and they will, which makes this coin even more centralized as I thought before. Also, they explain that social profiles and financial data won’t be linked to the wallet or profile, but I don’t really believe it. There will definitely be an option where you can share all that data which will eventually be more beneficial in terms of app use. A rather weird statement to read was how Facebook said they won’t share any data or information about its users “unless required by law or for limited technical reasons.” That means that it is no different than a bank or any third-party instance which promises to keep your money safe.

However, the whitepaper says that “The Libra protocol does not link accounts to a real-world identity. A user is free to create multiple accounts by generating multiple key-pairs.”

But ultimately, the Calibra wallet will use similar verification and anti-fraud procedures that banks and credit card providers currently use, as well as systems to monitor accounts for unusual behavior in order to prevent fraudulent activity.

“The libra currency and reserve will enable people around the world to trade in one single native currency,” says David Marcus, Facebook’s head of blockchain, and now the head of Facebook’s newly created cryptocurrency subsidiary, Calibra. “What we’re hoping is we will have the ability to foster a lot of innovation in the ecosystem across all dimensions.”