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 libra.org, 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.”