Facebook Cryptocurrency Libra Could Destroy the U.S. Dollar, Warns Rep

Facebook’s Libra cryptocurrency has undeniably caught the attention of Federal Reserve Chairman Jerome Powell. “Libra raises serious concerns regarding privacy, money laundering, consumer protection, financial stability,” he said.

“These are concerns that should be thoroughly and publicly addressed,” he warned.

These comments came during a Congressional committee hearing. Rep. Maxine Waters, D-Calif., chairwoman of the House Financial Services Committee, asked Powell if Libra should be subject to regulatory oversight.

Powell said yes, but clarified that the way forward should be a “careful one, not a sprint to implementation.” Powell added that the project “cannot go forward” unless Facebook answers lawmakers’ and regulators’ questions.

“All of those things will need to be addressed very thoroughly and carefully, and in a deliberate process.”

Facebook announced Libra in June. The problem will be run by the Libra Association, a non-profit based out of Geneva, Switzerland. It is set to launch in 2020.

Facebook is not the only big-name company to be associated with Libra.

Mastercard, Spotify, Stripe, Uber, Visa and PayPal will have a hand in the running of the crypto project. 

Unlike those companies, however, Facebook will be solely in charge of Calibra, the Facebook subsidiary constructing a digital wallet to store and transfer the cryptocurrency.

‘Unchecked expansion’

Many lawmakers within Congress echo the severe concerns raised by Powell. 

Waters wants to see Libra shelved for the time being. She sees it as an overall trend of Facebook’s “unchecked expansion and extending its reach into the lives of its users.”

Rep. Brad Sherman, D-Calif., also was severely critical of Libra.

Sherman believes Libra has the power to “to transfer power from the United States government to sanctions and tax-evaders, terrorists, and drug dealers while reducing the importance of the U.S. dollar as the reserve and trade currency.” 

Sherman has previously called to outlaw all cryptocurrenciesHe believes that they represent a threat to U.S. global power.

“An awful lot of our international power stems from the fact that the dollar is the standard unit of international finance and transactions […] it is the announced purpose of the supporters of cryptocurrencies to take that power away from us.”

Small-cap winners galore

The big stock market winners share one common attribute: Near the beginning of the ascent of their shares, the companies offer revolutionary products or services, are market leaders in their respective industries, or both. Some big stock market winners that possessed the attributes outlined above are Netflix (NFLX), which we recommended to investors in October 2002; Intuitive Surgical (ISRG), which we bought and recommended in July 2004; Baidu.com (BIDU), which we bought and recommended in August 2006; and MercadoLibre (MELI), which we recommended to investors in October 2010. Get up-to-date small-cap stock picks from David Frazier, editor of Small-Cap Profit Confidential.
Click here

Smarter cryptocurrency investments

The stock market crash of 2008 was the catalyst for his journey into alternatives. And interestingly, it was the impetus behind the creation of Bitcoin and the blockchain technology behind it. Keene Little wasn’t ready to risk his money yet but he was very curious, so he began charting Bitcoin’s technical patterns. What finally convinced him to dip a toe into digital currencies was seeing that they followed familiar price patterns that could be analyzed and successfully acted on. Now he shares those insights with subscribers to the Crypto Wealth Protocol.
Learn more

Leave a Reply