At the US Senate hearing last night, David Marcus, the head of Facebook's blockchain and CEO of Calibra, was besieged by lawmakers. The politicians said the company was "imagining" and was not credible.
For example, Senator Sherrod Brown bluntly stated:
"The occurrence of a scandal shows that Facebook is not worthy of our trust."
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Lawmakers believe that before Facebook launches a new business model, it should first clean up its "house."
Sherrod Brown, vice chairman of the Democratic Party, said at the hearing:
“Give them the opportunity to experiment with the bank accounts of the people? It’s crazy!”
Republican senator Martha McSally bluntly said:
"I don't trust you."
Four worries caused Members to distrust Facebook Libra
Throughout the hearing, the distrust of parliamentarians on Facebook is mainly reflected in these aspects:
- A legacy of history, Facebook’s previous scandal of customer privacy information as a bargaining chip;
- Facebook itself is too influential, and some even think that it is a country, not a company, so it does not want to see Facebook expand its influence;
- There are contradictions in Marcus's statement about how to solve Libra's privacy issues;
- Libra is registered in Switzerland, and lawmakers hope that the US regulatory agency will dominate the project, and Libra is currently not regulated;
Some thoughts on the hearing
It seems easy to see that the regulatory authorities have not yet had a good understanding of Libra. Many questions can be found in the white paper. The concerns of the members of the parliament are also understandable. The hearings are not happy, and many people are also in the crowd. Expected, but it also revealed a signal: short-term Libra is difficult to issue, and its regulatory path still has a long way to go.
Does that mean that Libra is dead? I don't think so, just as Marcus said at the hearing:
“I believe that if the United States does not lead innovation in the digital currency and payments, other countries will…”
Facebook has found a magic box, and this magic box will have a subversive impact on the world, and at this moment, central banks and other institutions around the world are gearing up.
Although the regulator does not like Libra, personally think that they will eventually be forced to release it, but it will take a long time.
After the Libra hearing, the coin circle lays the gun
It is worth noting that at the end of the hearing, the market price of Bitcoin suddenly plummeted. According to the data provided by qkl123.com, Bitcoin began diving at around 23:45 on the 16th Beijing time, until 1:30 am on the 17th. It fell to $9511.
(Data from: qkl123.com)
There seems to be no direct connection between Libra and Bitcoin. In terms of some people in the currency circle, Libra, as a centralized digital asset, is hindered by the regulatory authorities and highlights the decentralization. The value of bitcoin.
Of course, not everyone has a similar view. They believe that Libra, as a more credible centralized stable currency, may allow for more admission and convenience for the currency circle. Difficulties will undoubtedly reduce the expectations of participants, so the market has been smashed.
It seems that both explanations have some truth. Is there another explanation?
In the author's view, the market last night was mainly dominated by large capital institutions to cause market panic.
(Market panic has reached the level of January this year)
The subsequent stagnation is the result of its hope. The market has plummeted. Participants will naturally find various reasons. The hearing is the best explanation. The market is more willing to believe that this is bad news.
But in essence, the institutions did not leave, but were silently harvesting…