Facebook’s Libra has been a hot topic since it has been announced. Not only is it attracting a lot of views and suggestions on the different social media platforms, but also from economists and governments. The newly announced cryptocurrency is currently the most trending topics to discuss on. There are many new people who have never been interested in buying cryptocurrencies but are now getting influenced by Libra and they want to buy it. So do you want to buy Libra? Read the latest developments and the involvement of the US Senate, before thinking about it.
Recent Developments
Facebook had presented the proposal of Libra in front of the US Senate committee appointed by the government. The session last date for five long hours and was full of heated questions. The committee wanted to understand how will this new cryptocurrency work and what ambition does it have. The executive from Facebook was grilled by the various members of the committee for 5 hours.
There were a number of concerns that were raised by the members of the committee. The most important question was about the security and privacy policy of the cryptocurrency, which has been a big concern since Facebook has been fined 5 billion dollars for the Cambridge Analytica issue. Moreover, they wanted to know how will the cryptocurrency work and what aim does it have. Various concerns about money laundering issues were also raised by the senators.
A threat to the world economy
Facebook said that it wants to make a global currency which will help in cross border transactions smoothly. However, various cross-questions were made because of this statement. The senator asked the executive about the effect of the currency on the dollar. Various banks and the Central Government have been raising concern on the increasing love for cryptocurrency. They one that it can be really harmful to the global economy because they are unstable.
Replying to the question, the executive from Facebook said that Libra will be banned by the US dollars and this will decrease the fluctuation. However, it still remains a topic of debate. Donald Trump has also tweeted and raised a concern about the new plans of Facebook. He suggested Facebook go through the legal way and get it regulated by the central bank. However, we all know that Central banks cannot regulate cryptocurrencies.
How to buy a Libra?
The prototype of the cryptocurrency is already ready. However, there are a lot of tests that have to be carried in order to ensure privacy and smooth functioning. Hence, you will have to wait for a few more months in order to buy this cryptocurrency.
However, no one actually knows if the cryptocurrency will be launched or not. This is because there are a lot of debates going in the white house and the Senate. The US government has also communicated with the Fed to get feedback about this new plan of Facebook. The concern of the government could be seen by the five hours long meeting for a grilling session with the Facebook executive. We expect a series of such sessions to continue until next year before any decision is made.
Libra vs Bitcoin
Bitcoin is currently the most famous cryptocurrency. However, Facebook says that its new cryptocurrency will be completely different from Bitcoin. Bitcoin couldn’t find its way in the mainstream because it is completely unregulated and the price fluctuates a lot. On the other hand, Libra will be regulated by several famous corporates and it will also be backed by the US dollars to ensure that there is no fluctuation in the pricing. Hence, it is just a matter of time and we will have to wait for further details.
