Difference of Libra and Crypto Noted In Congress as Bitcoin Gets Clear Distinction from Facebook’s Coin
Deliberations in Congress about Facebook’s Libra have shown that Congress may have a grasp of crypto and what it entails. During the hearing where Facebook was represented by its executive David Marcus, legislators made it a point to differentiate between cryptocurrency projects that are currently in existence and the project Facebook proposes to launch.
One of the main questions that was raised by Sen. Brian Schatz is why Facebook itself should be permitted to build a cryptocurrency. The senator specified that the concerns they have are not about the benefits of cryptocurrency in general. Other questions that were raised concern the security issues that may come with the RUST programming of Libra.
Omer Ozden, CEO of Rocktree Capital, said that the comments made by members of Congress reflect their thoughts on Facebook and Libra and they do not paint Bitcoin and cryptocurrency in general with the same brush. Ozden adds that even the less knowledgeable members of Congress have enough knowledge to note that what they are hearing is different from crypto in general and they are able to make the separation.
The stance taken by congress in the hearing offers hope to the crypto industry as there is evidence that there is now better knowledge of what cryptocurrency entails. There is a shift from previous positions held by congress when they called for outright bans of cryptocurrency.
Perianne Boring, the founder of the Chamber of Digital Commerce, said that the understanding of blockchain technology and cryptocurrencies in congress had come a long way. The Chamber of Digital Commerce hosted lawmakers for a blockchain education event after the second hearing.
Steps to educate legislators
Most of the challenges that cryptocurrencies face when it comes to regulations come from misconceptions that have been formed regarding what digital assets are and how they operate.
Initiatives such as the Digital Chamber’s Blockchain Education Day are an important tool in the quest to ensure that all concerned parties have the correct knowledge about what blockchain and cryptocurrency are.
During the event, just about 120 crypto companies met with staffers or officials from 70 different offices in the Senate and House of Representatives. According to Matthew Trudeau, chief strategy officer at ErisX, lawmakers are aware of the great potential the crypto industry has. He added that they were impressed with the quality of questions that were presented by lawmakers.
Trudeau notes that the perceptions which legislators hold about digital assets have come from Bitcoin and other major cryptocurrencies. He says that there is a need for the crypto community to educate the staff about other blockchain applications to ensure that the discourse about cryptocurrency is not directed by facts about a few top digital assets.
The bottom line
Congress hearings about Libra have revealed a number of interesting facts pertaining to how legislators view cryptocurrency. The crypto industry should gain confidence in the perceptions that are developing in congress as they show that there might hope for the industry in the United States.