Facebook and its controversial cryptocurrency

Last week Facebook was in the eye of the hurricane because of its Libra project. The cryptocurrency that Facebook will launch with a significant number of companies that aim to debut the digital currency in the first half of 2020.

A couple of weeks ago, the social network launched the project through a white paper; this was strongly criticized by the crypto community. Now it is the United States government who requested a hearing with the entity.

It surprises me that launching of a project, makes the authorities take their time to discuss this type of topics where Bitcoin and Altcoins are in everyone's agenda. Can you imagine doing this for every, crypto exchange, virtual wallet, or every cryptocurrency that exist? They would not have time, nor would the community accept it. It is not about being in favor of Facebook or not, but the cryptocurrencies and its ecosystem move in an open-source network, which allows it to continue building without barriers.

For many, the congressmen interventions were no surprise. They were expected not to know about cryptocurrencies. However, I think it is acceptable that ordinary people do not have a greater knowledge of digital currencies, but not members of Congress. Individuals who provide a service to the state should be better prepared, especially if they have a hearing that aims at cryptocurrency. By having a better knowledge, they would be able to ask questions that point to a better understanding of where the Libra corporation wants to go and deepen its white paper.

Undoubtedly, some of the congressmen interventions were utterly wrong. Making judgments on cryptocurrencies and placing it in the same category as fiat money.

Example: U.S. Representative Alexandria Ocasio-Cortez

On the other hand, among the expert panelists was Meltem Demirors, “strategy director of CoinShares, a digital asset management firm. She was one of the few who clarified points about Bitcoin and Libra. ”

“During the House hearing, Demirors stressed the differences between Libra and bitcoin, emphasizing the fact that, unlike bitcoin, Libra will live on a closed network, be backed by physical assets and require permissions for people to hold the currency.”

“That makes comparing the two difficult from both a commercial and a regulatory standpoint, she told Congress, adding that the regulations for Libra should be distinct from those moderating the bitcoin network.”

However, issues like crypto, money, and privacy are made public and given the importance that they should have always had. Facebook is one of the most popular social networks that currently exist. The popularity that this company has with users would help launch this new currency. Being a company with worldwide recognition, the effect that a new product can have is gigantic.

If you missed the hearing Youtuber Naomi Brockwell, summarizes the audience brilliantly.

I hope you enjoyed it!

By: Carolina Pérez

Twitter: @carolinaninap