Messari CEO Believes The US Government Perceives Libra To Be A Bigger Threat Than Bitcoin


Ryan Selkis is a businessman and former venture capitalist. He is the founder and CEO of Messari in New York City, a firm that is building an open data library for the crypto asset class. He recently spoke about Facebook's Libra and, in his opinion, the US government considers it to be a bigger threat than Bitcoin.

Recently, Korea’s Financial Services Commission (FSC) looks at what might occur “If 2.4 billion Facebook users worldwide transfer one-tenth of their bank deposits to Libra.” If this occurred, banks’ solvency would diminish, as would their loan reserves, representing a threat to emerging markets from the relocation of the capital out of those countries.

The simplification of money exchange and remittances through Libra is also expected to limit central banks’ ability to control international capital movements. The effectiveness of monetary policy would also be limited if Libra becomes widely exchanged for central bank currency.

Selkis spoke to Bloomberg saying,

“It seems Libra should continue to draw most of the attention in ire because it's on the wrong side of the political cycle.” He added: “If Facebook and other companies want to become a bank, they must seek a new Banking Charter and become subject to all Banking Regulations, just like other Banks, both National and International.”

The US President Donald Trump has publicly expressed his mistrust for cryptocurrency saying it was ‘no money’ and was based on ‘thin air.’ He even issued a warning to the crypto traders that they would have to follow the banking regulations. Trump even said that Libra has little standing or dependability. He added:

“If Facebook and other companies want to become a bank, they must seek a new Banking Charter and become subject to all Banking Regulations, just like other Banks, both National and International.”

One of the biggest names in the crypto ecosystem, Anthony Pompliano, spoke to CNBC about the advantage Bitcoin has over Libra. He said:

“With bitcoin, there is no CEO, there is no headquarters. You cant send a letter and call someone for a hearing. So I think the complete decentralized nature of the asset is what makes it compelling.”

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