Bitcoin Gets No Shine From Senate Hearing Regarding Facebook’s Proposed Crypto Coin Libra
As you may know, this week the U. S. Senate Banking Committee is reuniting in order to discuss Facebook’s Libra project. The new crypto token is very controversial and is generating a lot of doubts recently, so the congressmen decided to investigate it further. Fortunately, Bitcoin was barely mentioned during the two-hour session.
Most of the lawmakers did not really seem concerned about the blockchain technology as much as they were with Facebook, a company that has, once and again showed that you cannot trust it too much.
David Marcus, a Facebook executive, affirmed that the Libra project could be very important for the U. S. because it would be out of the crypto revolution without it. Brian Schatz, a Democrat from Hawaii, was one of the people to attack Facebook. He argued that the question is not whether the U. S. should be a part of it, but Facebook.
He affirmed that Facebook has a bad reputation when it comes to data privacy and that there are several reasons to be concerned because the company does not have the trust of the public.
Senator Kyrsten Sinema, a Democrat from Arizona, responded in a similar manner. She defended cryptocurrencies and affirmed that criminals were not using cryptos. Chris Van Hollen, a Democrat from Maryland, was considerably more worried about Facebook than Bitcoin.
To him, BTC is so volatile that it will simply fail to achieve widespread adoption. Facebook’s coin, however, is supposed to be used exactly in the widest manner. There is also the issue of trust in the Libra Association, which is way more centralized than Bitcoin ever was.
Marcus defended Libra by affirming that its main goal was to promote financial inclusion for people who have problems in being banked. According to him, the major goal that Facebook was pursuing at the moment was to create something useful that would be widely adopted and that could enable underbanked or unbanked people to be a part of the financial world.
Bitcoin’s libertarian roots made it a very decentralized token with a limited supply (for better and for worse), Libra, on the other hand, has no restraints. You simply have to trust that the Libra Association will not use its power on its benefit, which is not very likely to happen.
Marcus is positive that Libra will not try to compete with national sovereign fiat (the way Bitcoin wants to do but is failing to achieve) or interfere with any kind of monetary policy.
So, while the regulators are not too keen on Facebook, they at least seem to respect the blockchain technology and are not out for Bitcoin, which is simply great.
After the debate, Barry Silbert, the founder of Grayscale Investments, complimented the Blockchain Association and Coin Center for the effectiveness of their lobby on convincing the congressmen not to bash Bitcoin too much.