The blockchain technology and the crypto market have plenty of supporters, no one can deny that. However, some people still believe that only some economists, young investors and tech-related people like the token, but the truth could not be more different.
Kevin McCarthy, the House leader of the Republicans, has recently joined the crypto club. He affirmed that he likes Bitcoin and that the government would benefit from using the blockchain technology.
He went out of the closet as a Bitcoin supporter during a recent interview for CNBC’s Squawk Box. On it, he talked about Bitcoin and Facebook’s new project Libra. He affirmed that he liked how secure BTC was and that its underlying technology, the blockchain, was also pretty great and the government should use for some projects.
McCarthy was not so bullish on Libra, though. In fact, almost no politician is. Ever since the reveal, several governments around the world have affirmed that Facebook is trying to create its own shadow bank and that crypto facilitates illegal activities.
In this case, McCarthy follows the popular trend: bashing Facebook’s Libra. While both of the assets are cryptos, there is a big difference in their decentralization levels.
Bitcoin is not really owned by anyone. It was created by an anonymous figure called Satoshi Nakamoto, which disappeared never to be seen again. Its network is fully decentralized, too, which is often seen as a good thing.
Facebook’s Libra, however, will be centralized on two institutions: Facebook’s subsidiary Calibra and the Libra Association, which will be comprised of 50 large companies. A bunch of companies owning a token is very different from individuals doing it anonymously, which is why Bitcoin is certainly the better crypto.
McCarthy affirmed that the lack of decentralization in Libra could lead to several anti-competitive practices and several types of violations. He also highlighted that, to Facebook, the users are not the customers, they are the product. The company is used to sell data in order to make money and this will probably not change.
Because of all these issues, one of his main goals at the moment is to determine whether Libra will actually have the potential to this anti-competitive behavior and be stopped in case the new coin is deemed to be too dangerous.
He is far from fully anti-Libra, though, as he is still undecided and only concerned about it. If the company is able to prove its decentralization, McCarthy will probably accept it.
The Republican Senator Pat Toomey, however, is considerably more pro-Libra. Facebook had a good strategy with the creation of the Libra Association, which will have companies such as Uber, eBay, Spotify, Visa and Paypal being a part of it.
Toomey believes that the government should give Facebook a chance. He affirmed that it is wrong to “presume in advance” that Facebook is out to make harm and they could be harming innovation by being too harsh. Will Libra actually be regulated? That is what we’ll find out soon.